The National Stock Exchange removed two stocks from the F&O ban list on September 23 but added one when the stock exceeded 95% of the overall market position limit.

Punjab National Bank is the latest stock on the exchange to be added to its F&O ban list. It was the top stock on the long-term accumulation list, up nearly 1% to Rs 40.50. However, the exchange has excluded Escorts and PVRs from the aforementioned ban list.

Ambuja Cements, Can Fin Homes, Delta Corp and RBL Bank remain on the F&O ban list and will meet again on September 23.

If securities derivatives contracts exceed 95% of the overall market position limit, they will eventually be placed on the ban list, the NSE said.

“All clients/members should trade derivative contracts for this security by reducing their positions by offsetting positions only. Any increase in vacant positions will result in appropriate criminal and disciplinary action,” it said.
During the ban, traders cannot take new stock positions but can start reducing their holdings. F&O ban rules help reduce stock speculation.

The full market position limit set by the stock exchange is the maximum number of open positions (buys and offers) in F&O securities contracts. If a stock’s open interest exceeds 95% of the overall market position limit, its F&O contracts enter a lock-in period.

The NSE said that normal trading in securities would resume only after aggregate open interest across exchanges falls to 80% or below market-wide position limits.