On August 13, Sun TV has been newly added to the Futures and Options (F&O) ban list. The list also includes several other stocks that remain under the ban, such as ABFRL, ABCAPITAL, and Bandhan Bank. Meanwhile, GNFC has been removed from the ban list.
What is an F&O Ban?
An F&O ban occurs when trading in futures and options (F&O) of certain stocks is restricted. This ban is implemented when the market-wide position limit (MWPL) of these stocks exceeds 95%. The purpose of this ban is to prevent excessive speculation and maintain the stability of the market.
Stocks Currently Under F&O Ban:
- Newly Added: Sun TV
- Still in Ban:
- ABFRL (Aditya Birla Fashion and Retail Ltd.)
- ABCAPITAL (Aditya Birla Capital Ltd.)
- Bandhan Bank
- Biocon
- BSOFT (Birlasoft Ltd.)
- Granules India
- Hindustan Copper
- India Cements
- IndiaMART InterMESH
- LIC Housing Finance
- Manappuram Finance
- Punjab National Bank (PNB)
- RBL Bank
- SAIL (Steel Authority of India Ltd.)
Stocks Removed from F&O Ban:
- GNFC (Gujarat Narmada Valley Fertilizers & Chemicals Ltd.)
FAQs on F&O Ban:
- How Does an F&O Ban Work? An F&O ban restricts the initiation of new futures and options positions in specific stocks. Traders are only allowed to square off existing positions. This ban is enforced when a stock’s market-wide position limit exceeds 95%, aiming to reduce speculation and stabilize the market.
- What Criteria are Used for F&O Ban? Stocks are placed on the ban list when their market-wide position limit surpasses 95%. This limit is determined by the total number of open interest positions. Once this threshold is breached, no new F&O positions can be initiated, though existing positions may be closed.
- When Does Trading Resume? Trading in F&O resumes for a stock once its open interest falls below 80% of the market-wide position limit. This decrease indicates reduced speculative activity, allowing the stock to exit the ban list and permitting new F&O positions to be initiated.
TOPICS:
F&O ban list