The National Stock Exchange (NSE) has announced a ban on trading in the futures and options (F&O) segment for ten stocks on December 19. These stocks were added to the F&O ban list because they exceeded 95% of the market-wide position limit (MWPL), which is a threshold set to prevent excessive speculation and market volatility.
Here are the ten stocks listed under the F&O ban for December 19:
- Bandhan Bank
- Chambal Fertilisers and Chemicals
- Granules India
- Hindustan Copper
- Manappuram Finance
- National Aluminium
- NMDC
- PVR Inox
- RBL Bank
- SAIL (Steel Authority of India Limited)
These stocks were included in the ban list because their derivative contracts exceeded 95% of the MWPL, indicating high speculative interest.
For investors, this ban means they cannot take new positions in these stocks in the futures and options market until the ban is lifted. However, they can still trade these stocks in the cash market, where regular buying and selling of shares take place.
Investors should be cautious when trading these stocks in the cash market, as they may experience higher-than-usual volatility. High price fluctuations can lead to unexpected gains or losses, so it is advisable to monitor these stocks closely.
The F&O ban list is a critical tool to maintain stability in the stock market by preventing excessive speculative activity. As of December 19, ten stocks, including Bandhan Bank, Chambal Fertilisers, and Granules India, have been added to the list. Investors should stay informed about the F&O ban list and take necessary precautions when trading these stocks.
