IndusInd Bank, SAIL Lead F&O Ban List – Check the 5 Restricted Stocks for March 17

On Monday, March 17, the National Stock Exchange (NSE) imposed a trading ban on five stocks in the futures and options (F&O) segment. This decision was made because these stocks had crossed 95% of the market-wide position limit (MWPL), which is the maximum limit of open positions allowed for a particular stock in the F&O segment.

The market-wide position limit is a regulatory measure designed to prevent excessive speculation and ensure market stability. When the open interest in a stock’s futures and options contracts exceeds 95% of this limit, the exchange places a ban on new positions in that stock’s F&O contracts to prevent further volatility and potential market manipulation.

Despite the restriction in the F&O segment, trading in these stocks will still be allowed in the cash market, meaning investors can continue to buy and sell the shares directly.

The NSE regularly monitors and updates the list of stocks under F&O restrictions based on their position limits. This list is reviewed and published daily to keep investors informed about the trading status of various securities.

On March 17, the National Stock Exchange (NSE) placed five stocks under the futures and options (F&O) trading ban. The affected stocks include BSE Ltd, Hindustan Copper Ltd, IndusInd Bank, Manappuram Finance Ltd, and Steel Authority of India Ltd (SAIL).

These stocks were added to the F&O ban list because their combined open interest in the F&O segment exceeded 95% of the market-wide position limit (MWPL). The MWPL is a regulatory threshold set by the exchange to prevent excessive speculation and maintain market stability. When the open interest in a stock’s futures and options contracts surpasses this limit, the NSE imposes a restriction to prevent traders from creating new F&O positions in those stocks.

While the ban remains in place, traders are not allowed to initiate new positions in the F&O contracts of these stocks. However, they are permitted to close out existing positions. Despite the F&O restriction, trading in these stocks is still allowed in the cash market, enabling investors to buy and sell the underlying shares directly.

The NSE regularly monitors the open interest levels of stocks and updates the F&O ban list daily based on changes in market activity. This helps ensure transparency and keeps traders and investors informed about the trading status of different securities.

The National Stock Exchange (NSE) has announced that the derivative contracts of certain stocks have exceeded 95% of the market-wide position limit (MWPL), resulting in the imposition of a trading ban on these contracts. The MWPL is a regulatory threshold set to prevent excessive speculation and maintain market order. When the open interest in a stock’s futures and options (F&O) contracts surpasses this limit, the exchange places the stock under a “ban period” to control market volatility and avoid excessive risk-taking.

According to the NSE’s statement, during the ban period, traders and investors are only allowed to reduce their existing positions in the derivative contracts of the affected stock. This means that they can close or offset their current F&O positions, but they are prohibited from initiating any new positions in these contracts.

The exchange has also warned that any attempt to increase open positions in the derivative contracts of a stock under the ban will result in appropriate penalties and disciplinary action. This measure is intended to prevent market manipulation and maintain orderly trading conditions.

When a stock is placed under the F&O ban, it remains available for trading in the cash market, meaning investors can still buy and sell the underlying shares directly. The NSE continuously monitors trading activity and updates the F&O ban list daily based on market-wide position limits and open interest levels.

On March 13, the benchmark BSE Sensex closed lower by 200.85 points or 0.27% at 73,828.91, extending its losing streak to five consecutive sessions. The decline was driven by sustained selling pressure in key sectors such as real estate (realty), information technology (IT), and automobiles (auto).

The trading session began on a positive note, with the 30-share Sensex opening higher and reaching an intraday peak of 74,401.11 during the late morning session. However, the initial gains were short-lived as selling pressure in select blue-chip stocks increased, dragging the index down.

As the session progressed, the Sensex slipped further and touched an intraday low of 73,770.59, representing a drop of 259.17 points or 0.35% from the day’s high. Ultimately, the index settled slightly above this level at 73,828.91. Out of the 30 constituent stocks on the Sensex, 22 stocks closed in the red while eight stocks posted gains.

The consistent decline over five trading sessions reflects ongoing market volatility and cautious investor sentiment, particularly in the realty, IT, and auto segments. The pressure on these sectors weighed on the broader market performance, contributing to the overall weakness in the Sensex.

On March 13, the benchmark NSE Nifty index closed lower by 73.30 points or 0.33%, settling at 22,397.20. The decline reflected the overall weakness in the market, with sustained selling pressure in key stocks dragging down the index.

During the trading session, the Nifty experienced further weakness, falling by 93.15 points or 0.41% to reach an intraday low of 22,377.35. Despite some attempts to recover, the index failed to regain momentum and closed in negative territory.

The downward movement in the Nifty was driven by losses in several major stocks. Among the 30 companies listed on the BSE Sensex, notable laggards included Zomato, Tata Motors, IndusInd Bank, Asian Paints, Bajaj Finance, Maruti Suzuki India, Adani Ports, Hindustan Unilever, Reliance Industries, Bajaj Finserv, UltraTech Cement, and Infosys. The selling pressure in these blue-chip stocks contributed significantly to the overall weakness in the Nifty.

The market’s negative performance was influenced by weakness in key sectors and cautious investor sentiment. The pressure on large-cap stocks, particularly in the financial, auto, and IT segments, weighed on the broader market and contributed to the index’s decline.