Today, June 19, 2024, the National Stock Exchange (NSE) has placed a restriction on trading in the futures and options (F&O) segment for seven specific stocks. These stocks include:

  • Balrampur Chini Mills
  • GNFC
  • Hindustan Copper
  • India Cements
  • Piramal Enterprises
  • SAIL (Steel Authority of India)
  • SunTV Network

The NSE has banned trading in F&O contracts for these seven stocks because the open interest in their derivative contracts has crossed 95% of the MWPL. In simpler terms, too much money is being wagered on the future prices of these stocks through F&O contracts, which could lead to sharp price swings and potentially risky situations for investors.

Can I still trade these stocks?

Yes, although trading in the F&O segment is banned, you can still buy or sell shares of these companies in the cash market on the NSE. The cash market allows you to directly purchase shares of a company that you believe will increase in value over time.

What should I do as an investor?

This F&O ban doesn’t necessarily mean these stocks are bad investments. The ban is a temporary measure to cool things down in the F&O segment. Here’s what you can do:

  • Stay informed: Keep an eye on news and announcements from the NSE to see when the ban is lifted for these stocks.
  • Focus on fundamentals: If you’re interested in any of these companies, research their financial performance, future prospects, and overall business strategy before making any investment decisions.
  • Consider the cash market: If you’re comfortable with buying and holding shares for the long term, you can still invest in these companies through the cash market.

Remember: Keep in mind that the stock market carries risks, and past success doesn’t guarantee future outcomes. Make sure to conduct thorough research before investing your money.

Additional points to note:

  • This F&O ban applies only to the NSE. Other stock exchanges in India may have different rules and regulations.
  • The NSE updates the F&O ban list daily. You can check the NSE website for the latest list of banned securities.

By understanding the reasons behind the F&O ban and its implications, you can make informed decisions about your investments in these companies.

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Bhoi Smrutirekha Dharanidhar Marketing and Finance
Smrutirekah is a finance enthusiast with a background in financial planning. Her passion for money management drives her to share practical tips and insights on this blog, empowering readers to take control of their finances. With clear, actionable advice, she helps oth

By Bhoi Smrutirekha Dharanidhar

Smrutirekah is a finance enthusiast with a background in financial planning. Her passion for money management drives her to share practical tips and insights on this blog, empowering readers to take control of their finances. With clear, actionable advice, she helps oth

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