Stocks Under F&O Ban on September 9, 2024

9 Sep 2024 , 10:30 AM

The National Stock Exchange (NSE) has banned trading in seven stocks in the futures and options (F&O) segment as of Monday, September 9. This ban was implemented because these stocks exceeded 95% of the market-wide position limit (MWPL).

Despite the ban in the futures and options (F&O) segment, these stocks remain available for trading in the cash market.

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

The National Stock Exchange regularly updates the list of securities under the futures and options (F&O) ban on a daily basis.

The derivative contracts of these securities have crossed 95% of the market-wide position limit, leading to their placement in the exchange’s ban period.

During the ban period, traders are allowed to only reduce their positions through offsetting trades. Any attempt to increase open positions in these securities could result in penalties and disciplinary action, according to the National Stock Exchange’s guidelines.

The exchange clarified that no new positions can be initiated while a stock is under the futures and options (F&O) ban. These measures are in place to ensure market stability and prevent excessive risk-taking in the derivatives market.