On Monday, November 11, 2024, the National Stock Exchange (NSE) added three stocks to its F&O (Futures and Options) ban list: Aditya Birla Fashion and Retail Ltd, Granules India Ltd, and Manappuram Finance Ltd. These stocks reached the 95% threshold of the market-wide position limit (MWPL), a measure the exchange uses to control high trading volume and limit speculative activity. Here’s what this means for investors and why it’s essential to monitor the F&O ban.
The ban is removed once the open interest in a stock drops below 95% of the market-wide position limit (MWPL). Once this happens, the NSE will remove the stock from the ban list, allowing traders to enter new positions in the F&O segment again. This process is closely monitored by the NSE, and updates to the F&O ban list are provided daily to keep traders informed.
For active traders and investors, it’s crucial to stay updated with the NSE’s daily F&O ban list to understand how it might impact their strategies. The F&O ban is a part of NSE’s risk management approach, ensuring stability in the derivatives market.
The F&O ban on Aditya Birla Fashion and Retail Ltd, Granules India Ltd, and Manappuram Finance Ltd is a temporary measure by the NSE to limit speculation and manage risk in these stocks. While trading remains open in the cash market, futures and options traders must wait until the ban is lifted. Keeping an eye on the NSE’s updates can help investors make informed decisions, especially when stocks they’re invested in are on the F&O ban list.
For daily updates, investors are encouraged to check the NSE’s announcements, as the list of banned stocks in the F&O segment is updated regularly.
