On September 17, 2024, the National Stock Exchange (NSE) has banned trading in the futures and options (F&O) segment for ten stocks. These stocks exceeded the market-wide position limit (MWPL), which means that the total number of futures and options contracts traded on these stocks reached 95% of the allowable limit. As a result, they are now part of the F&O ban list for the day.
The stocks included in today’s F&O ban list are:
- Aarti Industries
- Balrampur Chini Mills
- Bandhan Bank
- Birlasoft
- Chambal Fertilisers and Chemicals
- GNFC (Gujarat Narmada Valley Fertilizers & Chemicals)
- Granules India
- Hindustan Copper
- LIC Housing Finance
- RBL Bank
When a stock is placed on the F&O ban list, trading in its futures and options contracts is restricted. Investors can no longer open new positions in these contracts. However, they can still close their existing futures or options positions if they wish. This helps reduce the risk of volatility in the stock’s price.
Importantly, the stock can still be bought or sold in the cash market, where actual shares of the stock are traded. This means that while trading in the futures and options market is restricted, regular trading in the stock itself remains open to investors.
The F&O ban is an important mechanism that helps prevent excessive speculation and maintains market stability. While these ten stocks are restricted in the futures and options segment, they remain available for trading in the cash market. Investors are advised to monitor the market closely and stay aware of which stocks are placed on the F&O ban list to avoid any surprises in their trading activities.
As the market remains volatile, it is crucial for investors to follow the NSE updates and stay informed about the F&O ban list changes, ensuring that they make well-informed decisions in their trading strategies.
