Stocks Under F&O Ban on September 16, 2024

16 Sep 2024 , 09:30 AM

The National Stock Exchange (NSE) banned trading in seven stocks in the futures and options (F&O) segment on Monday, September 16, due to exceeding 95% of the market-wide position limit (MWPL).

The stocks placed under the F&O ban include Aarti Industries, Balrampur Chini Mills, Bandhan Bank, Chambal Fertilisers & Chemicals, Granules India, Hindustan Copper, and RBL Bank.

Despite the ban in the F&O segment, these stocks will still be available for trading in the cash market. The NSE regularly updates the list of securities under the F&O ban based on their trading activities and market position limits.

The F&O ban is implemented when derivative contracts in these securities exceed 95% of the market-wide position limit (MWPL).

Clients and traders can only reduce their positions in the affected securities during this ban by taking offsetting positions. NSE has prohibited opening new positions in the F&O segment for these stocks during the ban period.

The NSE issued a warning that any increase in open positions in these stocks could lead to penalties or disciplinary action. The F&O ban aims to maintain market stability by controlling excessive speculative positions in certain stocks.