The National Stock Exchange (NSE) has placed five stocks under the Futures and Options (F&O) ban on March 18 after they crossed 95% of the market-wide position limit (MWPL). This restriction is meant to reduce excessive speculation in the derivatives market and maintain market stability.
Stocks in the F&O Ban List Today
The five stocks that are banned from F&O trading today are:
- BSE Ltd
- Hindustan Copper Ltd
- IndusInd Bank
- Manappuram Finance Ltd
- SAIL (Steel Authority of India Ltd)
These stocks exceeded 95% of MWPL, which means that there was a high level of trading activity in their derivatives contracts. Due to this, NSE has restricted the creation of new F&O positions in these stocks.
When a stock is placed in the F&O ban, traders cannot take new positions in futures and options contracts for that stock. However, they are allowed to square off existing positions, meaning they can close their ongoing trades.
It is important to note that these stocks can still be traded in the cash market, meaning investors can buy and sell them normally as regular shares.
The NSE’s F&O ban list is a regulatory measure to keep trading safe and stable. Investors should check the NSE’s daily updates to stay informed about which stocks are under restriction. If a stock you are trading is on the ban list, it is advisable to follow risk management strategies and avoid unnecessary speculation.