Stocks under F&O Ban on October 7, 2024

7 Oct 2024 , 11:03 AM

The National Stock Exchange (NSE) banned futures and options (F&O) trading for seven stocks on October 7 as they exceeded 95% of the market-wide position limit (MWPL).

The affected stocks are still available for trading in the cash market, despite being restricted in the F&O segment. The seven stocks under the F&O ban include: Bandhan Bank, Birlasoft, GNFC, Granules India, Hindustan Copper, Manappuram Finance, and RBL Bank.

NSE updates the list of securities under the F&O ban daily based on MWPL breaches. These stocks exceeded the 95% threshold of their MWPL, leading to their placement in the ban period by the NSE.

Traders can only reduce their open positions in these stocks through offsetting trades during the ban. The exchange prohibits the creation of new positions in the affected stocks during the ban period.

Any increase in open positions during this period will result in penalties or disciplinary actions by the NSE. The F&O ban is a regulatory measure aimed at preventing excessive speculation and maintaining market stability in these securities.