The National Stock Exchange (NSE) has banned trading in one stock under the futures and options (F&O) segment on Monday, February 10. Manappuram Finance Ltd has been placed under the F&O ban list as it exceeded 95% of the market-wide position limit (MWPL).
A stock is placed under the F&O ban period when its derivative contracts cross 95% of the market-wide position limit. This means that too many traders have taken positions in the stock’s futures and options segment, leading to regulatory restrictions. The NSE takes this step to ensure market stability and prevent excessive speculation.
Even though the stock is banned in the F&O segment, it can still be traded in the cash market.
The NSE revises the F&O ban list every day, considering the market-wide position limit. Traders and investors must check the updated list before trading to ensure they comply with regulations.
Manappuram Finance Ltd is the only stock under the NSE’s F&O ban list for February 10. Traders should be cautious and follow NSE regulations while trading in the derivative contracts of this stock. Always stay updated with the latest F&O ban list to make informed trading decisions.
