The National Stock Exchange (NSE) has placed Manappuram Finance Ltd in the Futures and Options (F&O) ban list on March 6, 2025. This happened because the stock’s open interest crossed 95% of the market-wide position limit (MWPL), which is the maximum trading limit set by the exchange.
Manappuram Finance, a well-known non-banking financial company (NBFC) specializing in gold loans, has seen heavy trading in its derivatives contracts. The increasing open interest in its F&O segment has exceeded 95% of MWPL, leading to its inclusion in the ban list.
Impact on Traders
- Existing traders: Those who already have open F&O positions in Manappuram Finance can continue to hold or exit their trades, but they cannot add new positions.
- New traders: Anyone looking to trade in Manappuram Finance’s F&O contracts will have to wait until the stock is removed from the ban list.
- Cash market availability: The stock is still available for trading in the cash market (equity segment).
The broader stock market showed mixed trends on March 6, with some sectors performing well while others faced selling pressure. The F&O ban on Manappuram Finance is a reminder for traders to track open interest levels before taking large derivative positions.