Tata Power, 3 other stocks placed on F&O ban list

Four stocks in total were included in the futures and options trading band as they had crossed 95 per cent of the market-wide position limit, the stock exchange said.

Tata Power’s scrip was last trading at Rs 219.90, 0.27 per cent lower than the previous close on the NSE. So far in the day, the stock moved in a band of Rs 218.80-225.70 on the exchange.

Stocks of state-owned companies such as Bharat Heavy Electricals Limited (BHEL), Punjab National Bank (PNB), and Steel Authority of India (SAIL) that were put under the stock ban list in the previous session continued to be part of the list, the exchange said.

The NSE updates the list of securities under a ban for trade on a daily basis.

“It is hereby informed that all clients/members shall trade in the derivative contracts of said securities only to decrease their positions through offsetting positions,” the NSE’s release said.

“Any increase in open positions shall attract appropriate penal and disciplinary action,” the exchange added.

Fresh positions are disallowed for any F&O contracts in a particular stock when it is under the F&O ban period.

The market-wide position limit as prescribed by the stock exchanges is the maximum number of contracts that can be open at any time.

Consequently, the F&O contracts of that stock enter a ban period if the open interest crosses 95 per cent of the market-wide position limit.