The National Stock Exchange (NSE) has announced that 16 stocks will be banned from trading in the F&O (Futures and Options) segment today, August 14. This means that investors will not be able to buy or sell these stocks through derivatives contracts.
The stocks included in the ban list are:
- Biocon
- Birlasoft
- IndiaMart
- Aditya Birla Capital
- Aditya Birla Fashion and Retail
- Bandhan Bank
- Chambal Fertilisers
- Granules India
- Hindustan Copper
- India Cements
- LIC Housing Finance
- Manappuram Finance
- PNB
- RBL Bank
- SAIL
The NSE has put these stocks in the ban period because the derivative contracts in these securities have crossed 95% of the market-wide position limit. This means that too many investors are holding positions in these stocks, which can lead to price volatility.
The ban on F&O trading in these stocks will be in effect for one day, and investors will only be allowed to reduce their existing positions through offsetting positions. They will not be able to create new positions in these stocks through F&O contracts.
This is not the first time that the NSE has banned stocks from trading in the F&O segment. The exchange regularly reviews the positions of various stocks and takes action to prevent excessive speculation.
Investors should be aware of the stocks that are included in the F&O ban list and avoid trading in these stocks through derivatives contracts. They should also be cautious about the price movements of these stocks, as they may be volatile due to the ban.
The F&O ban list is a list of stocks that are not allowed to be traded in the futures and options segment of the stock market. This is done to prevent excessive speculation and price volatility.
Stocks are put on the F&O ban list when the derivative contracts in these securities cross 95% of the market-wide position limit. This means that too many investors are holding positions in these stocks, which can lead to price volatility.
When a stock is put on the F&O ban list, investors are not allowed to buy or sell the stock through futures and options contracts. They can only reduce their existing positions through offsetting positions.
The F&O ban list is reviewed on a daily basis, and stocks can be removed from the list if the market conditions improve. However, there is no fixed duration for which a stock remains on the ban list.
Investors should be aware of the stocks that are included in the F&O ban list and avoid trading in these stocks through derivatives contracts. They should also be cautious about the price movements of these stocks, as they may be volatile due to the ban.