The National Stock Exchange (NSE) of India has placed restrictions on trading in the futures and options (F&O) segment for eight stocks today. These stocks have crossed the 95% threshold of the market-wide position limit (MWPL), which means that trading in their derivative contracts is restricted for now.
However, these stocks are still accessible for trading in the cash segment. The NSE regularly updates the F&O ban list each day, based on the market conditions and trading limits.
Stocks in the F&O Ban List Today:
The eight stocks that are currently under the F&O ban on September 13 are:
- Aarti Industries
- Aditya Birla Fashion & Retail
- Balrampur Chini Mills
- Bandhan Bank
- Chambal Fertilisers and Chemicals
- Granules India
- Hindustan Copper
- RBL Bank
These companies have reached 95% or more of their market-wide position limits. As a result, the NSE has decided to place them under the F&O ban for the day.
Stocks are placed under the F&O ban to ensure fair trading practices. When a stock reaches 95% of its market-wide position limit, it is believed that there is a high level of speculative activity. To prevent any risk of market manipulation or sudden price movements, the NSE imposes a temporary ban on these stocks in the F&O segment.
The main aim is to ensure that market participants can trade in a fair environment and that no one can unfairly influence the price of the stock by holding too many positions in its derivatives.
The F&O ban is usually temporary and can be lifted once the open interest in the stock falls below the 95% threshold. The NSE updates the F&O ban list daily, so a stock can be removed from the ban list if the conditions change.
If you are a trader or investor holding positions in these stocks, you can continue to trade them in the cash market. You can also close your existing futures or options positions if needed. However, you cannot open new F&O positions in these stocks while they are on the ban list.
It is essential to keep an eye on the NSE’s daily updates to know which stocks are under the F&O ban. This will help you make smarter choices and steer clear of avoidable risks.
The F&O ban is a routine measure taken by the NSE to maintain fair trading practices in the market. While it might limit some trading activity in the short term, it ultimately aims to protect the interests of all market participants. Investors and traders should stay updated with the latest changes in the F&O ban list to ensure they comply with trading rules and regulations.