The National Stock Exchange (NSE) has added nine stocks to its Futures and Options (F&O) ban list on January 27. These stocks have crossed 95% of the Market-Wide Position Limit (MWPL), leading to restrictions in the F&O segment.
Which Stocks Are on the F&O Ban List?
As of January 27, the following nine stocks are on the F&O ban list:
- Aditya Birla Fashion and Retail
- Bandhan Bank
- Can Fin Homes
- Dixon Technologies
- IndiaMART InterMESH
- L&T Finance
- Manappuram Finance
- Mahanagar Gas
- Punjab National Bank
The ban happens when the derivative contracts of a stock cross 95% of the allowed trading limit, known as the Market-Wide Position Limit (MWPL). This move is intended to limit excessive trading activity and prevent large price swings in these stocks.
These stocks can still be traded in the cash market (regular stock trading) but cannot be traded through derivatives like futures or options during the ban period.
Investors are advised to stay updated with market conditions and track changes in the F&O ban list regularly. Understanding these restrictions can help make informed decisions and avoid unnecessary risks in trading.
