The National Stock Exchange (NSE) has announced the list of securities that will be prohibited from further trading in the Futures and Options (F&O) segment on Wednesday, August 21, 2024. This decision is taken to manage the market volatility and prevent excessive speculation.
On August 21, 2024, the National Stock Exchange (NSE) placed 16 stocks under the Futures and Options (F&O) trading ban. The stocks on the ban list are Aarti Industries, Aditya Birla Fashion and Retail, Balrampur Chini Mills, Bandhan Bank, Birlasoft, GNFC, Granules India, Hindustan Copper, India Cements, LIC Housing Finance, Manappuram Finance, National Aluminium, Piramal Enterprises, RBL Bank, SAIL, and Sun TV.
When a stock is placed on the F&O ban list, it means that the market-wide position limit (MWPL) for that stock has been exceeded by 95%.
Investors and traders often monitor the F&O ban list closely because it affects their trading strategies. Being aware of which stocks are banned can help in managing risks and avoiding penalties associated with trading in banned securities. The F&O ban list is updated daily by the NSE based on the MWPL data, making it an important aspect of daily trading decisions.
Investors who are holding positions in any of the banned stocks should monitor the market closely and be prepared to adjust their positions as needed. It is also advisable to consult with a financial advisor before making any investment decisions.