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By Malvika Gurung
Investing.com — One stock has been added to the Futures and Options (F&O) ban list for trade by the National Stock Exchange on Nov 3, 2022, taking the total to two on the list.
While the state-owned lender Punjab National Bank (NS:) continue to be retained under the F&O ban list on Thursday, the country’s second-largest mortgage lender LIC Housing Finance (NS:) is the latest entrant to the list by NSE.
The leading housing finance stock tumbled almost 13% in Wednesday’s session as investors reacted to the company’s weak Q2 numbers.
The subsidiary of India’s largest insurer LIC reported a fall in NIM, along with slumping net interest income and individual loan disbursements in the Sept quarter despite posting a 23% YoY surge in net profit at Rs 305 crore.
Read Also: LIC Housing Finance Tanks 9% on Weak Q2 Show Despite Higher Profit
The two securities have exceeded 95% of the market-wide position limit (MWPL), thereby banned for trade under the futures and options segment in the day, and shall continue remaining on the list until their positions fall below 80%.
While on the Futures and Options ban list, no new/fresh F&O positions can be bought or sold for the stock(s), else that trader gets penalised. Traders with existing positions in that security can unwind their positions.
Moreover, the market-wide position limit is set by the stock exchanges.
The NSE directs all clients/members to trade in the derivative contracts of the aforementioned securities only to decrease their positions through offsetting positions.
The leading stock exchange updates the list of securities in the F&O ban for trade every day.
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