IndusInd Bank, SAIL, BSE, Manappuram Finance, and Hindustan Copper are all on the NSE's F&O ban list for Monday, March 17. This happened because trading in their derivatives exceeded 95% of the market-wide position limit.
When this happens, new positions cannot be created, but existing ones can be squared off. The ban is lifted only when open interest in the stock falls below 80% of MWPL across exchanges.
IndusInd Bank's stock has plummeted, losing 30% of its value in just five trading days. Investors are concerned about accounting issues and the RBI's decision to extend CEO Sumant Kathpalia's term by only one year, rather than the three-year extension requested by the bank.
On top of that, the NSE has placed IndusInd under Additional Surveillance Measure (ASM) - Stage 1, increasing the pressure.
The RBI attempted to calm nerves by stating that the bank is financially stable, with a capital adequacy ratio of 16.46% and a provision coverage ratio of 70.20%.
As of March 9, its liquidity coverage ratio was 113%, comfortably exceeding the regulatory requirement of 100%. The regulator also directed IndusInd's management to resolve the issue by the end of Q4FY25, while maintaining proper disclosures.
The BSE stock is also struggling, falling 5% in the last five sessions and 25% in a month. The issue is that the NSE recently changed the expiry date for its derivative contracts to Monday, one day before the BSE's expiry.
According to brokerage firm Nuvama, this shift may reduce overall market volumes, particularly among retail traders who are more active near expiry. It also puts NSE in a better position to reclaim its previous 83.6% market share, which was last seen in December 2024.
Among the other stocks on the F&O ban list, SAIL has fallen 5% in the last five sessions, trailing Tata Steel (-1.38%), JSW Steel (-1.56%), and Jindal Steel.
Meanwhile, Manappuram Finance has fallen 0.83% in the same time period.
