Stocks Under F&O Ban on September 3, 2024

3 Sep 2024 , 10:27 AM

On Tuesday, September 3, the National Stock Exchange (NSE) imposed a trading ban on two stocks—Balrampur Chini Mills and Hindustan Copper—in the futures and options (F&O) segment. This action was taken because the derivative contracts for these stocks exceeded 95% of the market-wide position limit (MWPL), triggering the ban.

While trading in the F&O segment is restricted, these stocks are still available for trading in the cash market. The NSE regularly updates the list of securities under the F&O ban, adjusting the restrictions as needed.

During the ban period, traders are only permitted to decrease their positions by offsetting existing contracts in these stocks. Any attempt to increase open positions will result in penal and disciplinary actions by the NSE. The ban will remain in effect until the open interest falls below the MWPL threshold.

This measure is part of the NSE’s regulatory framework to maintain market stability and prevent excessive speculation. No new positions are allowed in the F&O contracts of these stocks while the ban is active, ensuring that market risks are contained.