Aditya Birla Fashion, Biocon, Vodafone Idea Stocks Face F&O Ban Today: Impact on Coin Market (COIN)

  • The National Stock Exchange (NSE) has banned five stocks from trading under the futures and options (F&O) segment on Monday, May 06, 2024.
  • The securities were banned as they crossed 95% of the market-wide position limit (MWPL).
  • Despite the ban, these stocks will still be available for trading in the cash market.

Five stocks have been banned from trading under the F&O segment by the NSE as they crossed the MWPL. However, they will still be available for trading in the cash market.

F&O Ban List Today

The five stocks that have been placed on the F&O ban list by the NSE for May 06, 2024, are ABFRL (Aditya Birla Fashion and Retail Ltd), Balrampur Chini Mills, Biocon, GMR Airports Infrastructure, and Vodafone Idea. The NSE updates this list daily. The derivative contracts in these securities have crossed 95% of the MWPL and are currently in the ban period. According to the NSE, all clients/members should trade in the derivative contracts of these securities only to decrease their positions. Any increase in open positions will attract penal and disciplinary action.

Impact on Stock Market

On Friday, the equity benchmark Sensex plummeted over 700 points, sinking below the 74,000 level, and Nifty retreated from a record high as investors pared exposure to telecom, capital goods, and tech stocks. The 30-share BSE Sensex dropped 732.96 points or 0.98 per cent to settle at 73,878.15 after soaring 484.07 points earlier in the day. The NSE Nifty also declined 172.35 points or 0.76 per cent to 22,475.85. The benchmark hit a record 22,794.70 in early trade, up 146.5 points or 0.64 per cent.

Conclusion

The NSE’s decision to ban five stocks from the F&O segment due to crossing the MWPL has had a significant impact on the stock market. However, these stocks will still be available for trading in the cash market. Investors are advised to trade in the derivative contracts of these securities only to decrease their positions to avoid penal and disciplinary action.

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