The National Stock Exchange (NSE) has placed eight stocks under a temporary trading restriction today, May 13th, 2024. Let’s understand what this means and how it might affect your trading plans.
F&O Ban: Limited Options for Some Stocks
The F&O, short for Futures & Options, allows investors to trade contracts based on a stock’s future price. The NSE implements an F&O ban when a stock’s price movement becomes very high, aiming to control excessive volatility.
What’s Restricted?
Under the F&O ban, investors cannot open any new F&O contracts for the affected stocks. These contracts essentially act like bets on the stock’s future price.
Can You Still Trade These Stocks?
Absolutely! The F&O ban only restricts F&O contracts. You can still buy or sell the underlying stock itself in the regular cash market segment of the NSE.
Which Stocks are on the Ban List Today?
Here’s the list of eight stocks affected by the F&O ban on May 13th:
- Balrampur Chini Mills
- Canara Bank
- GMR Airports Infrastructure
- Hindustan Copper
- Vodafone Idea
- Punjab National Bank (PNB)
- Steel Authority of India (SAIL)
- Zee Entertainment Enterprises (ZEE)
What Should You Do?
If you were planning to trade F&O contracts for these eight stocks today, you’ll have to wait until the ban is lifted. The NSE updates the list daily, so check their website for the latest information.
The Bottom Line
The F&O ban is a temporary measure to ensure stability in the stock market. While it limits options for some investors today, it aims to create a more predictable trading environment for everyone. Remember, you can still trade the underlying stocks in the cash market if you wish.
