Stocks Under F&O Ban on October 4, 2024

4 Oct 2024 , 09:25 AM

The National Stock Exchange (NSE) has imposed a futures and options (F&O) trading ban on six stocks on Friday, October 4.

The ban was triggered because these stocks exceeded 95% of their market-wide position limit (MWPL). Despite the ban on F&O trading, these stocks can still be traded in the cash market.

The six stocks under F&O trading ban are Bandhan Bank, Birlasoft, Granules India, Hindustan Copper, Manappuram Finance, and RBL Bank.

NSE updates its F&O ban list daily, reflecting stocks that surpass the MWPL threshold. Stocks exceeding 95% of MWPL automatically trigger the exchange’s ban, restricting further F&O positions.

During the ban, traders are only allowed to reduce their positions by offsetting existing contracts; no new positions are permitted. Any increase in open positions while the ban is in place may result in penal or disciplinary actions by the NSE.

The F&O trading ban is a regulatory measure designed to promote market stability and limit excessive speculation in stocks that have breached the MWPL limit.