Stocks Under F&O Ban on September 5, 2024

5 Sep 2024 , 10:09 AM

On September 5, the National Stock Exchange (NSE) banned trading in four stocks in the futures and options (F&O) segment. This is due to exceeding 95% of the market-wide position limit (MWPL). These stocks include Aditya Birla Fashion & Retail, Balrampur Chini Mills, Hindustan Copper, and RBL Bank.

The ban applies only to the F&O segment, meaning these stocks can still be traded in the cash market. NSE monitors and updates the list of securities under the F&O ban daily based on the market’s activity and open positions. When securities exceed 95% of MWPL, derivative contracts for these stocks are placed under a restriction period.

During this ban period, clients and members are only allowed to reduce their existing positions through offsetting trades. No new positions can be taken on these F&O contracts until the restriction is lifted. The NSE has also warned that any attempt to increase open positions during the ban may lead to penalties or disciplinary action.

This daily review of the MWPL ensures that trading remains balanced and prevents excessive speculation in these stocks, protecting market integrity. Once the positions fall below the limit, the ban on these stocks will be lifted, and trading can resume normally in the F&O segment.