Five names have been added to the list of prohibited shares of trading in the futures segment and the option after this securities passes 95 percent of the market position limit.
Sailing is the latest stock to come under the F & O tire list published by Exchange on January 13. The idea of Vodafone, IndiaBulls Housing Finance, RBL Bank and Delta Corp continue to be on the F & O Exchange tire list.
The derivative contract in five effects crosses 95 percent of the market position limit and therefore they are on the ban list, NSE said.
“All clients / members must trade in the derivative contract of the security only to reduce their position through a compensation position. Every increase in open positions must attract appropriate criminal actions and discipline,” NSE said.
During a ban, traders are not permitted to take new positions in stock under the prohibition of F & O, but they can begin to reduce their position. F & O tire rules help reduce speculation in a stock.
The limit of the wide market position, which is regulated by the Stock Exchange, is the maximum number of open positions circulating (buy and selling) in the F & O security contract. If an open interest in stocks crosses 95 percent of the wide market position limit, the F & O contract enters the ban period.
Normal trade in security resumes only after an open interest in aggregate cross exchange fell to 80 percent or below the market position limit, NSE said.