On Thursday, January 16, the National Stock Exchange (NSE) prohibited trading in nine equities in the futures and options (F&O) segment because they were over 95% of the market-wide position limit (MWPL). These equities will, nevertheless, be traded on the cash market. The list of securities in the F&O ban for trade is updated daily by the NSE.
Stocks in F&O Ban Today
- ABFRL (Aditya Birla Fashion and Retail Ltd)
- Kalyan Jewellers India Ltd (KALYANKJIL)
- Manappuram Finance (MANAPPURAM)
- Aarti Industries (AARTIIND)
- Bandhan Bank (BANDHANBNK)
- RBL Bank (RBLBANK)
- Hindustan Copper (HINDCOPPER)
- L&T Finance Holdings (LTF)
- Angel One (ANGELONE)
The stocks’ derivative contracts hit 95% of the market-wide position limit, which led to their placement under the F&O ban. This indicates that, in comparison to the permitted maximum, the overall number of available jobs in these contracts was excessive. This limitation guarantees market stability and shields investors from undue risk resulting from excessive speculation. Until the prohibited equities are taken off the list, investors are unable to trade in futures and options contracts for them. They are still able to purchase or sell these equities on the cash market, though.
When did the stock included in the ban list?
As of Wednesday, Bandhan Bank, Aarti Industries, and RBL Bank were still listed because their respective open interest percentages of the MWPL of their F&O contracts were 86%, 89.9%, and 86.7%. On January 16, the open interest in derivative contracts for Hindustan Copper was 85% of its MWPL, while that of L&T Finance and Angel One was 95.1% and 89.3%, respectively. The securities listed above were kept on the list as of Wednesday, January 15. On Thursday, Aditya Birla Fashion, Kalyan Jewellers, and Manappuram Finance were included in the list after their respective F&O contracts’ open interest rates rose to 101.1%, 95%, and 98.1%.
