Securities in ban period what is this?

Discussion in 'Derivatives' started by ravikvr, Jan 9, 2008.

  1. ravikvr

    ravikvr New Member

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    Hi Pros,

    Can someone explain me what happens when a stock company enters in to the securities ban period. Does it mean F & o trading does not resume for that day or for that month.

    Securities in ban period for trade date January 10, 2008- F&O segment

    The derivative contracts in the below mentioned securities have crossed 95% of the market-wide position limit and are currently in the ban period. 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. Any increase in open positions shall attract appropriate penal and disciplinary action in accordance with the Circular No. NSCC/F&O/C&S/365 dated August 26, 2004.

    Sr.No. Symbol
    1 ADLABSFILM
    2 APTECHT
    3 ARVINDMILL
    4 BINDALAGRO
    5 BONGAIREFN
    6 GMRINFRA
    7 HINDOILEXP
    8 HOTELEELA
    9 IFCI
    10 ISPATIND
    11 IVRPRIME
    12 NAGARFERT
    13 PARSVNATH
    14 RAJESHEXPO
    15 RPL
    16 SRF
    17 TTML
     
  2. prabhu53

    prabhu53 New Member

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    hello,basically when the marketwide open positions go above 95% sebi sets the ban,the ban will be lifted and open for trade only when the particular script falls below 80%....till then you cannot buy/sell fresh...you can only buy/sell if you have any thing which you bought/sold before the ban.

    thankyou
     
  3. ravikvr

    ravikvr New Member

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    Prabhuji,
    Thanks for the info. Based on your experience do you think that if a stock is in this ban, does that mean that the stock value would not raise from the current levels, because there would be very less addition of open interest.
     
  4. sd_singal

    sd_singal Member

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    what is the meaning of crossing 95% of market wide position and what will be the effects of ban on price of securities
     
  5. yatishjain

    yatishjain Member

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    Also note that if you trade these scrips during ban period, you might face penalty and also auction
     
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