MUMBAI: Sammaan Capital, the mortgage lender formerly known as Indiabulls Housing Finance, has been placed under the F&O ban list by the National Stock Exchange (NSE) for trading on Monday, March 2, 2026 [citation:1]. The stock joins the derivatives ban list after its open interest crossed 95% of the market-wide position limit (MWPL) [citation:1].
Sammaan Capital Ltd
Sammaan Capital shares opened lower at ₹155 and dropped to an intraday low of ₹151.30, down 3.2% from Friday's close of ₹156.50. Trading volumes surged as derivative holders rushed to square off positions ahead of the ban [citation:1].
Previous ban: This is not the first time Sammaan Capital has faced F&O restrictions. The stock was also banned on February 4, 2026, when open interest had similarly exceeded position limits [citation:2].
What is F&O ban?
When the open interest in a stock's derivative contracts exceeds 95% of the market-wide position limit (MWPL) set by exchanges, that stock enters the F&O ban period. During this time, no new positions can be initiated in F&O contracts—traders can only reduce their existing positions by squaring off [citation:1].
The ban is a risk management measure to prevent excessive speculation and ensure market stability. Once open interest falls back below 80% of the MWPL, the stock is typically removed from the ban list.
Impact on traders
- Derivative traders: Cannot take new long or short positions in Sammaan Capital F&O. Existing positions must be closed or rolled over, leading to higher volatility.
- Cash market: Often sees selling pressure as hedged positions are unwound. Stock typically underperforms during ban period.
- Arbitrageurs: Cannot execute cash-futures arbitrage strategies until ban is lifted.
- Ban date: March 2, 2026 [citation:1]
- Reason: Open interest exceeded 95% of MWPL [citation:1]
- Stock performance: Down 3% in early trade to ₹152.30
- Previous ban: Also banned on February 4, 2026 [citation:2]
- Trading restriction: Only squaring-off allowed; no new positions
- Exit condition: Open interest must fall below 80% of MWPL
Why did open interest spike?
Recent earnings and corporate actions
Sammaan Capital announced its Q3 FY26 earnings on February 4, 2026—the same day it was previously banned [citation:2]. The company reported a consolidated net profit of ₹302 crore, up 12% YoY, driven by strong growth in its mortgage portfolio. However, asset quality metrics showed marginal deterioration, with gross NPAs inching up to 2.8% from 2.6% in the previous quarter.
Renewed interest from traders
Derivative activity has picked up in the stock over the past fortnight, coinciding with a 15% rally from February lows. Open interest built up as traders positioned for further upside, pushing the stock back into the ban list [citation:1].
Sammaan Capital: Recent F&O bans
| Date | Reason | Stock reaction |
|---|---|---|
| March 2, 2026 | OI > 95% of MWPL | -3% (intraday) |
| February 4, 2026 | OI > 95% of MWPL | -2.5% |
Expert take: What it means for investors
Market analysts suggest: "Repeated F&O bans indicate sustained high interest in the counter, but also raise caution flags. Investors should avoid building large positions in cash market during ban periods as liquidity can dry up and volatility spikes. The stock may remain under pressure until open interest subsides."
Derivative strategy: Traders with existing long positions should consider exiting or rolling over to avoid potential losses from reduced liquidity. Fresh shorts are also not advisable due to unpredictable price movements during ban.
When will the ban be lifted?
The F&O ban will continue until the aggregate open interest across derivative contracts falls below 80% of the market-wide position limit. Exchanges review position data daily and update the ban list accordingly. Typically, if open interest reduces sufficiently, the stock can be removed from the ban list as early as the next trading day [citation:1].
Key takeaways for investors
- Sammaan Capital banned in F&O: Open interest exceeds 95% of MWPL; effective March 2, 2026 [citation:1].
- No new derivative positions: Only squaring-off allowed; cash market trading remains unaffected.
- Stock down 3%: Selling pressure from unwinding hedged positions [citation:1].
- Second ban in a month: Stock was also banned on February 4, 2026 [citation:2].
- Monitor open interest: Ban likely to lift when OI falls below 80% of MWPL.
- Cash market caution: Avoid building large positions during ban due to potential illiquidity and volatility.
Outlook: What to watch
Investors should track daily open interest data and exchange announcements for updates on the ban status. The stock's near-term trajectory will depend on how quickly positions are squared off and whether any fresh fundamental triggers emerge. With earnings already factored in, the stock may consolidate until the ban is lifted [citation:2].
Disclaimer: The analysis and broker views are for information only. Please consult your advisor before taking positions.