The National Stock Exchange (NSE) has placed seven stocks under the Futures and Options (F&O) ban list for Monday, October 7. These stocks have exceeded the market-wide position limit (MWPL) and cannot be traded in the F&O segment for that day. However, they are still available for trading in the regular cash market.
Stocks in the F&O Ban List on October 7
The seven stocks placed in the F&O ban list on October 7 are:
- Bandhan Bank
- Birlasoft
- GNFC
- Granules India
- Hindustan Copper
- Manappuram Finance
- RBL Bank
These stocks have exceeded the 95% MWPL, which means a large portion of their total allowable trading positions has already been used up. As a result, no new futures and options contracts can be created on these stocks during the trading session.
Although these stocks are banned from F&O trading, investors can still trade them in the cash market. This means that you can still buy and sell shares of these companies as usual. However, the ban on F&O trading could impact the stock prices. Often, when a stock is included in the F&O ban list, it becomes less attractive for traders who rely on derivatives for profit, and this may cause the stock’s price to drop temporarily.
If you have open positions in any of the banned stocks, it is important to keep a close watch on the market. You will not be able to open new F&O positions, but you can still manage your current positions. Consider the risks involved, especially if you are concerned about price declines. It is advisable to make informed decisions based on your personal financial goals and risk tolerance. Consulting with a financial advisor may help you make the right decision.
The F&O ban is a measure used by the NSE to manage risk and prevent excessive speculation in the stock market. While it temporarily restricts trading in futures and options for certain stocks, it still allows trading in the cash market. Investors should be aware of how this ban may affect stock prices and consider their options carefully before making any decisions. As always, understanding your financial goals and risk profile is key to making the best choices in such situations.
