The National Stock Exchange (NSE) placed five stocks under restrictions in the Futures and Options (F&O) segment on Tuesday, November 12, because these stocks exceeded 95% of the market-wide position limit (MWPL). This is a measure taken by the NSE to help control speculation and maintain a stable market.
Stocks under the F&O trading restriction for November 12
The following five stocks are included in the F&O ban list on November 12, meaning investors cannot take new derivative positions in them until they fall below the 95% MWPL threshold. Here’s a look at each company and its sector:
- Aarti Industries Limited
- Granules India Limited
- Hindustan Copper Limited
- Manappuram Finance Limited
- Vodafone Idea Limited
The NSE monitors the trading activity of stocks to ensure a balanced and stable market. When the F&O ban limit is reached, it’s often due to significant trading activity or high levels of speculation. The F&O ban aims to reduce volatility and prevent any potential imbalance in the market.
The NSE reviews the F&O ban list daily. Stocks remain on the ban list until their open interest falls below the 95% limit. When the limit drops, the ban is lifted, and normal trading activity in derivatives can resume. Investors who hold positions in these stocks should keep an eye on market updates to know when trading restrictions might change.
The NSE’s decision to add Aarti Industries, Granules India, Hindustan Copper, Manappuram Finance, and Vodafone Idea to the F&O ban list is a common regulatory measure designed to maintain market stability. While it restricts some trading options, it helps to protect both the market and investors from potential risks caused by excessive speculative trading. Investors can continue trading these stocks in the cash market, but they should remain mindful of any changes in trading limits.
