Adani Ports, Ambuja Cements among stocks under F&O ban on NSE today
A list of two Adani Group stocks have been put under the ban for trade on Friday, February 3, 2023 under the futures and options (F&O) segment by the National Stock Exchange (NSE). These securities have been put on ban under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE.
Cement maker Ambuja Cements continues to be a part of the F&O ban list whereas Adani Ports has been added to the list by the stock exchange for today. The NSE updates the list of securities in F&O ban for trade everyday.
Ambuja Cements shares and Adani Ports shares have been under pressure in the last six trading sessions amid the selloff in Adani Group stocks on concerns over the US-based short seller Hindenburg Research’s report. Adani last year bought cement firms ACC and Ambuja Cements.
“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 stock exchange said. “Any increase in open positions shall attract appropriate penal and disciplinary action,” NSE added.
The derivative contracts in the mentioned securities have crossed 95% of the market-wide position limit and are therefore have been currently put in the ban period by the stock exchange, said NSE.
No fresh positions are allowed for any of the F&O contracts in that particular stock when it is under the F&O ban period. The MWPL (market-wide position limit) is set by the stock exchanges which is the maximum number of contracts that can be open at any time (Open Interest), therefore, the F&O contracts of that stock enter a ban period if the open interest crosses 95% of the MWPL.
Meanwhile, for Friday, Indian indices may witness a muted start as SGX Nifty, Singapore Nifty that is the Indian Nifty traded in the Singapore Stock Exchange, indicates a flat opening for the Indian stock market today.
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