On June 28, 2023, L&T Finance Holdings (L&TFH) and Manappuram Finance stocks were placed under the F&O ban. However, they were still available for trading in the cash market. The ban is imposed when the open interest on a stock exceeds 95% of the market-wide position limits, and is lifted when the open interest falls below 80%. These bans do not affect traders who trade in indices. The stocks were banned due to their high open interest, with L&TFH experiencing a significant increase from the previous session.
Five Indian stocks including Punjab National Bank, Hindustan Aeronautics, L&T Finance Holdings and RBL Bank have been banned from trade on 26 June 2023 due to their futures and options contracts surpassing open interest caps. The ban reverses when open interest falls below 80%. The ban does not impact those who trade in index. On Friday, Indian indices the S&P BSE Sensex and Nifty50 finished with declines, while Nifty Bank ended lower by 0.23% at 43,622.90. Technical Analyst Rajesh Bhosale advised that investors should consider buying opportunities after any short-term corrections.
Six stocks, including Punjab National Bank, Delta Corp, L&T Finance Holdings, Bharat Heavy Electricals, Hindustan Copper and Hindustan Aeronautics Limited, are under the futures and options ban for trading on June 22, 2023. However, the stocks will be available for trading in the cash market. F&O contracts enter the ban period when open interest exceeds 95% of market-wide position limits and are only reversed if open interest falls below 80%. S&P BSE Sensex and Nifty50 ended positively on June 21, with Nifty expected to reach the milestone of 19,000 and beyond in near future.
Nine stocks including Indiabulls Housing Finance, IEX, and BHEL are under the F&O ban for trade on Friday, with Tata Chemicals and L&TFH being the latest to enter the list. The ban on these stocks is due to their open interest crossing the market-wide positions limit. They can still be traded in the cash market. The Sensex and Nifty50 both closed with declines on Thursday, ending a three-session gaining streak. Analysts say the bullish sentiments could be dampened if there is any further sell-off.
L&T Finance Holdings received "no objection" for the amalgamation scheme from the central bank vide a letter, the firm said in a regulatory filing. The merger, however, will be subject to your various other statutory and regulatory approvals.