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Ambuja Cements, Indiabulls housing finance, and Delta Corp are the 3 stocks that have been put under a ban for trade on Wednesday, September 14, 2022, under the futures and options (F&O) segment by the National Stock Exchange (NSE) as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE.
The list of securities in the F&O ban for trade is updated by NSE on a daily basis.
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Ambuja Cements is a leading cement-producing company in the country having a market share of more than 40% in the cement manufacturing industry. Delta Corp is a gaming and hospitality company that owns and operates Casinos, while India bulls housing finance, is one of India’s leading housing finance companies offering home loans in the affordable housing segment.
“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.
“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.
What is MWPL??
MWPL is basically the maximum number of open positions allowed on futures and options contracts of a particular underlying stock.
MWPL should be lower than either 30 times the average number of shares traded daily during the previous calendar month in the relevant underlying security in the underlying segment, or 20% of the number of shares held by non-promoters in the relevant underlying security, i.e. free float holding.
If that limit is exceeded, the scrip enters a ban period and the exchange bans traders from taking fresh positions till open positions are unwound and come down to 80% of MWPL.
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