On December 16, 2024, the National Stock Exchange (NSE) added eight stocks to its Futures and Options (F&O) ban list. While these stocks remain tradable in the cash market, the restrictions in the F&O segment aim to stabilize market movements and control excessive speculation.
The NSE added the following eight stocks to the F&O ban list:
- Granules India
- Hindustan Copper
- Manappuram Finance
- Metropolis Healthcare
- National Aluminium (NALCO)
- PVR Inox
- RBL Bank
- SAIL (Steel Authority of India Limited)
These stocks crossed the 95% MWPL due to high trading volumes and speculative positions. The ban helps maintain market stability and reduces the risk of extreme price volatility.
The F&O ban is a regulatory step to ensure fair trading and reduce volatility in India’s stock market. While this may temporarily limit trading opportunities, it benefits the market by promoting stability. Investors are advised to focus on long-term goals and make informed decisions during such phases.