5 Stocks of NSE in Futures & Options Ban List today

5paisa Research Team 5paisa Research Team 10th December 2022 - 07:31 am

One of the popular measures of risk management in the futures and options market is the daily F&O ban list that NSE puts out. As of Thursday, there were 5 stocks in the ban list and no fresh positions are allowed in these stocks. Trades can only close existing positions in futures and options and any fresh positions either on the long side or short side are barred till the time the stock remain in the ban list.

ISIN	Scrip Name	NSE Symbol	MWPL	Open Interest	Limit for Next Day	OI/MWPL
INE124G01033	DELTA CORP LIMITED	DELTACORP	35604699	28862700	No Fresh Positions	81.06%
INE148I01020	INDIABULLS HSG FIN LTD	IBULHSGFIN	68933088	65676600	No Fresh Positions	95.28%
INE669E01016	VODAFONE IDEA LIMITED	IDEA	1606294231	1517880000	No Fresh Positions	94.50%
INE976G01028	RBL BANK LIMITED	RBLBANK	102172032	84140600	No Fresh Positions	82.35%
INE114A01011	STEEL AUTHORITY OF INDIA	SAIL	289139949	277718250	No Fresh Positions	96.05%

This is one of the ways by which NSE manages the risk of F&O players by automatically restricting the speculative F&O activity in stocks that are extremely volatile.

Here is what you need to know about how the bank list is created

The exchange communicates the ban list to the Clearing Members who are required to monitor their overall position limits accordingly. In addition, the exchange also monitors as part of its regular surveillance, apart from the compliance and back office monitoring at the broker level. Here are the highlights.

1) At the end of each day, Exchange disseminates the aggregate open interest across all Exchanges in the futures and options on individual scrips along with the market wide position limit for that scrip.

2) The next step is to test whether the aggregate open interest for any scrip exceeds 95% of the market wide position limit for that scrip. Any stock where the open interest exceeds 95% of MWPL, will come in the ban list.

3) From the next trading day onwards the client/ TMs should trade only to decrease their positions through offsetting positions till the normal trading in the scrip is resumed. That means you can cover your long or short positions, but not take fresh positions.

4) The normal trading in the scrip is resumed only after aggregate open interest across Exchanges comes down to 80% or lower of the MWPL. In the above table, Delta and RBL Bank had touched 95% but are yet to come down below 80%, so they stay in ban period.

5) The trading system has a facility to display an alert as soon as the open interest on the NSE in the futures and options contract of any stock exceeds 60% of the market wide position limit (MWPL). Such alerts are displayed at time intervals of 10 minutes, but trading members must be careful not to disable such alerts.

Also Read:-

1) 5 Mantras for Trading in Futures

2) 5 Mantras for Trading in Options