The National Stock Exchange (NSE) has added four stocks to its Futures and Options (F&O) ban list on January 28. These stocks are IndiaMART InterMESH, Manappuram Finance, Mahanagar Gas, and Punjab National Bank. The decision was made because the derivative contracts of these stocks crossed 95% of the Market-Wide Position Limit (MWPL).
Stocks are placed in the F&O ban list when their derivative contracts exceed 95% of the MWPL. This limit is set by stock exchanges to reduce risks caused by high speculative trading. On January 28, IndiaMART InterMESH, Manappuram Finance, Mahanagar Gas, and Punjab National Bank exceeded this limit and were added to the ban list.
The F&O ban directly affects traders who deal in derivatives. While no new positions can be opened, existing trades can still be managed. Traders need to watch the market closely and plan their strategies to avoid potential losses.
These stocks can still be traded in the cash market. The ban applies only to the F&O segment, which includes futures and options contracts.
By keeping an eye on the NSE updates and understanding the F&O ban list rules, investors can navigate such situations more confidently and ensure better financial decisions.
