Business, Finance

Vodafone joins RBL Bank, Delta Corp, Indiabulls Housing Finance on F&O ban list of NSE

Vodafone joins RBL Bank, Delta Corp, Indiabulls Housing Finance on F&O ban list of NSE

The list of stocks banned from trading in the futures and options member has increased to four after these securities crossed 95 percent of the request-wide position limit.

Vodafone Idea, which corrected20.5 percent in former session, was the fourth stock to join the ban list on January 12. It traded with a volume of210.87 crore equity shares on the National Stock Exchange, an increase of 236 percent compared to its five- day normal of62.77 crore shares and an increase of 290 percent compared to its 30- day normal of54.04 crore equity shares.
Indiabulls Housing Finance, RBL Bank and Delta Corp continued to be on the exchange’s F&O ban list.

Secondary contracts in these four securities crossed 95 percent of the request wide position limit and hence they’re on the ban list, the NSE said.

“ All guests/ members shall trade in the secondary contracts of said security only to drop their positions through negativing positions. Any increase in open positions shall attract applicable correctional and correctional action,” the NSE said.

During the ban, dealers aren’t allowed to take fresh positions in stocks under the F&O ban, but they can start reducing their positions. The F&O ban rule helps to reduce enterprise in a stock.

The request wide position limit, which is set by the stock exchanges, is the maximum number of outstanding open positions ( buy and vend) in the F&O contracts of asecurity.However, also its F&O contracts enter the ban period, If the open interest in a stock crosses 95 percent of the request wide position limit.

Normal trading in a security resumes only after the total open interest across exchanges comes down to 80 percent or below the request wide position limit, the NSE said.

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