On October 23, the National Stock Exchange (NSE) announced that twelve stocks have been added to the Futures and Options (F&O) ban list. These stocks were banned after exceeding 95% of the Market-Wide Position Limit (MWPL). When a stock crosses this limit, it is placed under the ban to control excess speculation and volatility in the market.
Here are the twelve stocks that have been added to the F&O ban list on October 23:
- Aarti Industries
- Bandhan Bank
- Birlasoft
- Chambal Fertilisers and Chemicals
- GNFC (Gujarat Narmada Valley Fertilizers & Chemicals)
- India Energy Exchange
- Indiamart Intermesh
- L&T Finance
- Manappuram Finance
- Piramal Enterprises
- Punjab National Bank (PNB)
- RBL Bank
These stocks will not be available for trading in the F&O segment until they come out of the ban. Investors are still able to trade these stocks in the cash market without any restrictions.
Stocks are added to the F&O ban list when the outstanding contracts in their futures and options cross 95% of the MWPL. This is done to prevent excessive speculation that can lead to market volatility. The goal is to ensure that trading remains stable and that large positions don’t lead to drastic price movements.
The ban does not stop investors from trading these stocks entirely. Investors can still trade these shares in the cash market or settle their existing F&O positions by either squaring them off (closing the contract) or carrying them forward.
If you have open positions in any of these stocks, you should be cautious. Closing positions early might be a good idea if the stock remains volatile, while holding onto them could carry more risk. It’s important to consult a financial advisor before making any big decisions, especially in cases like this where volatility can affect market trends.
Yes, while these stocks are under the F&O ban, investors can still trade them in the cash market. The F&O ban only applies to futures and options contracts. So, if you want to buy or sell shares of Aarti Industries, Bandhan Bank, or any other stock on this list, you can do so through normal cash trading.
If you have existing F&O positions in any of the banned stocks, consider your options carefully. You may want to close your positions to avoid the risk of further price changes. If you are considering trading these stocks in the cash market, be aware of the potential volatility due to the ban.
In situations like this, it’s always good to stay informed about market conditions and follow updates from the NSE. Consulting a financial expert can also help you make informed decisions and manage risk effectively.
