Stocks Under F&O Ban List Today, May 06, 2024

6 May 2024 , 09:36 AM

On Monday, May 06, 2024, the National Stock Exchange (NSE) announced the banning of trading for five stocks under the futures and options (F&O) segment due to exceeding 95% of the market-wide position limit (MWPL).

The stocks placed under the ban are ABFRL (Aditya Birla Fashion and Retail Ltd), Balrampur Chini Mills, Biocon, GMR Airports Infrastructure, and Vodafone Idea.

Despite the ban in the F&O segment, these stocks will still be available for trading in the cash market. The NSE updates its list of banned securities in the F&O segment daily based on breaches of the MWPL by derivative contracts.

Trading in derivative contracts for the banned stocks is restricted from opening fresh positions. Traders can only engage in offsetting positions to decrease their existing positions.

Any increase in open positions beyond the ban will result in appropriate penal and disciplinary action, as stated by the NSE. This restriction on fresh positions applies to all F&O contracts of the specified stocks during the ban period.

On the same day, the equity benchmark Sensex experienced a significant decline, plummeting over 700 points to fall below the 74,000 level. The Nifty also retreated from its record high as investors reduced exposure to telecom, capital goods, and tech stocks.

 The Sensex settled at 73,878.15 after a volatile session, marking a drop from its intra-day high of 75,095.18. Similarly, the Nifty closed at 22,475.85, down from its early high of 22,794.70.

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