Today, August 12, 2024, a total of 15 stocks are on the Futures & Options (F&O) ban list on the National Stock Exchange (NSE). This list includes companies that have crossed a specific threshold in terms of trading activity, making them temporarily ineligible for new trades in the derivatives segment. This restriction is in place to ensure market stability and prevent excessive speculation, which can lead to volatility.
The key reason for a stock being placed on the F&O ban list is that the open interest (OI) in the stock has exceeded 95% of the market-wide position limit (MWPL).
The F&O (Futures and Options) ban list is created to prevent excessive speculation in certain stocks. When a stock is added to this list, it means that investors cannot create new positions in the futures and options contracts of that stock. However, they can still buy or sell the underlying shares in the cash market.
The stocks currently on the F&O ban list include some well-known names like:
- Aditya Birla Capital
- Aditya Birla Fashion Retail
- Bandhan Bank
- Biocon
- Birlasoft
- GNFC (Gujarat Narmada Valley Fertilizers & Chemicals)
- Granules India
- Hindustan Copper
- India Cements
- IndiaMart Intermesh
- LIC Housing Finance
- Manappuram Finance
- Punjab National Bank (PNB)
- RBL Bank
- Steel Authority of India Ltd (SAIL)
For traders and investors, the F&O ban list is significant because it restricts their ability to take new positions in these stocks. If a trader attempts to take a new position in a stock that is on the ban list, they may face penalties from the exchange. Therefore, it is crucial for market participants to stay informed about which stocks are on the ban list and plan their trading strategies accordingly.
The stock market comes with risks, and prices can fluctuate. It’s crucial to only invest money that you can afford to lose.
