The National Stock Exchange (NSE) has announced a ban on trading futures and options (F&O) contracts for nine stocks on January 17. These stocks include Aarti Industries, Aditya Birla Fashion and Retail, Angel One, Bandhan Bank, Hindustan Copper, Kalyan Jewellers India, L&T Finance, Manappuram Finance, and RBL Bank.
This ban comes into effect because the trading activity in these stocks has crossed 95% of the market-wide position limit (MWPL), which is the maximum limit set for F&O trading in a stock.
While the ban is in place, traders cannot open new derivative contracts for these stocks. However, those with existing F&O positions in these stocks are allowed to close their trades. This restriction mainly affects traders who rely on derivatives for short-term trading strategies.
It’s important to note that trading in these stocks is still allowed in the cash market. This means that investors can continue to buy and sell shares of these stocks in the regular stock market segment.
Investors and traders are advised to monitor these updates to stay informed about any changes. The F&O ban ensures a balanced and controlled trading environment, helping protect the market from unnecessary risks and keeping it fair for all participants.
