Stocks Under F&O Ban On September 25, 2024

25 Sep 2024 , 10:44 AM

The National Stock Exchange (NSE) imposed a trading ban on five stocks in the Futures and Options (F&O) segment on Wednesday, September 25, 2024 due to these stocks exceeding 95% of the Market-Wide Position Limit (MWPL).

The stocks under the F&O ban include:

• Aditya Birla Fashion and Retail
• Granules India
• Hindustan Copper
• Vodafone Idea
• Indian Energy Exchange (IEX)

Even though these stocks are restricted in the F&O segment, they are still available for trading in the cash market.

The NSE monitors and updates the list of securities in the F&O ban daily, based on their position limits. When stocks surpass 95% of the MWPL, they are placed under a trading ban to prevent further speculative positions.

While under the ban, no new positions can be created in these stocks within the F&O segment, although existing positions can be squared off.

The F&O ban is lifted once the stock’s total open interest drops below 80% of the MWPL, allowing normal trading to resume. The ban ensures that market activity remains within regulatory limits, helping to prevent excessive volatility and safeguard market integrity.