The list of stocks banned from trading in the futures and options sector has grown to four after those securities exceeded 95% of market-wide position limits.
Vodafone Idea corrected 20.5% in the previous session and was the fourth stock to be added to the ban list on Jan. 12. Its shares traded on the National Stock Exchange at 2,108,700 shares, up 236% from its top five. The daily average was 627,700 shares, a 290% increase from the 30-day average of 540,400 shares.
Derivative contracts for these four securities exceed 95% of the market’s broad position limit, and are therefore on the prohibited list, the NSE said.
“All clients/members should trade derivative contracts on this security by reducing their positions only by offsetting positions. Any increase in vacancies will result in appropriate criminal and disciplinary action,” the NSE said.
During the ban, traders are not allowed to take new stock positions under the F&O ban, but they can start reducing their positions. F&O ban rules help reduce stock speculation.
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