Stocks Under F&O Ban on September 11, 2024

11 Sep 2024 , 09:40 AM

On September 11, 2024, the National Stock Exchange (NSE) imposed a trading ban in the futures and options (F&O) segment for seven stocks, as these securities crossed 95% of the market-wide position limit (MWPL).

The affected stocks include Aditya Birla Fashion & Retail, Balrampur Chini Mills, Bandhan Bank, Biocon, Chambal Fertilisers and Chemicals, Hindustan Copper, and RBL Bank.

Despite the F&O ban, these stocks will remain available for trading in the cash market. The NSE updates its F&O ban list daily, depending on the market-wide position of the securities. When stocks exceed 95% of the MWPL, they enter a restricted trading period to prevent further speculation and excessive positions.

During the ban period, traders are allowed only to reduce their existing positions through offsetting trades. The NSE warned that any attempt to increase open positions will result in penalties and disciplinary action.

No new F&O positions can be initiated until the securities fall below the MWPL threshold. This measure ensures better control of market volatility and helps prevent excessive risk exposure in derivative trading. The NSE’s daily monitoring of MWPL aims to maintain market integrity and protect traders and investors.