After they closed their positions, the Delta Corp. stock was removed from the futures and options (F&O) ban it had been subjected to on 7 July.

Exchanges operate various segments, including cash and derivatives (F&O), where equities, currencies, and commodities are traded. Within equities, exchanges provide both a cash segment and a derivatives segment, allowing large investors to hedge their cash market portfolios by taking an opposite position on the derivatives segment. It also allows traders who don't own the stock to initiate naked bets on their derivatives counterparts ahead of the events that can cause significant price movements.

Delta Corp. found itself in a precarious situation as seven large traders held significant positions ahead of the GST Council meeting. The buildup of positions during the week played a role in the stock being placed under an F&O ban on 7 July. Such a ban is imposed by exchanges when outstanding positions held by traders surpass a predetermined threshold. When a stock is banned, traders and clients are prohibited from initiating new positions, but can only square-off existing positions.

Analysts said it will be tough to determine the position held (long or short) by the six large clients. "The stock could see some 8-10% more downside before stabilising," said Chandan Taparia, derivatives head at Motilal Oswal Financial Services. The Delta Corp. stock has fallen 23% from ₹247 apiece on 11 July to ₹189.50 a day later in response to higher tax on gaming. Manoj Vayalar, vice president, Religare Broking, however, said the increase in outstanding positions of futures contracts should not be seen as 'mere shorting' but as a 'hedge' by large funds ahead of the Q1 results. "The stock is nearing a triple bottom and should get support at ₹160 levels, which could be a good entry point," Vayalar added.

The promoters held 33.28% in the company as of 31 March. Other prominent shareholders included HDFC MF, with 9.21%, and Quant MF at 2.29%.