Stocks Under F&O Ban On September 17, 2024

17 Sep 2024 , 10:14 AM

The National Stock Exchange (NSE) imposed a trading ban on ten stocks in the futures and options (F&O) segment on September 17, 2024, after they exceeded 95% of the market-wide position limit (MWPL).

The affected stocks are: Aarti Industries, Balrampur Chini Mills, Bandhan Bank, Birlasoft, Chambal Fertilisers and Chemicals, GNFC, Granules India, Hindustan Copper, LIC Housing Finance, and RBL Bank.

While trading in these stocks is restricted in the F&O segment, they remain available for trading in the cash market. The NSE regularly updates its list of securities under the F&O ban as per market conditions, with changes reflecting daily.

According to NSE guidelines, when a stock surpasses 95% of its MWPL, it is placed in the ban period, during which traders can only reduce their open positions through offsetting trades.

No new positions are permitted in these stocks during the ban period. Any attempt to increase open positions in the derivative contracts will result in penalties and disciplinary actions by the exchange.

The ban is lifted once the stock’s position falls below 95% of the MWPL. This regulatory mechanism ensures market stability by limiting excessive speculative trading in stocks that are nearing their position limit thresholds.