The National Stock Exchange (NSE) has placed three stocks Aarti Industries, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), and Granules India under the Futures and Options (F&O) ban list. This step has been taken as these stocks exceeded 95% of the market-wide position limit (MWPL), indicating high speculative trading activity.
Investors holding these stocks in the F&O market can either keep their positions or reduce them. However, no new positions can be taken in these stocks’ futures or options contracts. This limitation might affect traders who rely on leverage provided by F&O contracts.
For investors in the cash market, this ban has no direct impact, as the stocks remain available for regular trading.
Key Takeaways for Traders
- Keep an eye on the open interest levels to monitor when the ban might be lifted.
- If you already have F&O positions in these stocks, manage them wisely to minimize potential losses.
- Consider the cash market if you still want to invest in these companies.
The NSE reviews and updates the F&O ban list every day based on the MWPL calculations. Traders should stay updated to avoid surprises during their trading sessions.
