Canara Bank, Birlasoft, SAIL, ZEEL Among Today’s 9 Stocks Under F&O Ban: Impact on Coin Market (COIN)

  • The National Stock Exchange (NSE) has banned nine stocks from trading under the futures and options (F&O) segment on Wednesday, May 15, 2024.
  • This ban was implemented as these securities crossed 95% of the market-wide position limit (MWPL).
  • Despite the F&O ban, these stocks will continue to be available for trading in the cash market.

Discover the nine stocks banned from the F&O segment by the NSE and understand the implications of this move for investors.

The F&O Ban List

The nine stocks that have been placed on the F&O ban list include Balrampur Chini Mills, Birlasoft, Canara Bank, GMR Airports Infrastructure, Hindustan Copper, Vodafone Idea, Piramal Enterprises, SAIL, and ZEEL. These stocks have crossed the 95% threshold of the MWPL, prompting the NSE to put them in the ban period. The NSE updates this list daily, and during the ban period, clients and members can only trade in the derivative contracts of these securities to decrease their positions. Any increase in open positions could result in penal and disciplinary action.

Implications of the F&O Ban

When a stock is placed under the F&O ban, no fresh positions are allowed for any of the F&O contracts in that particular stock. This means that investors can only trade to offset their positions, not to increase them. This measure is taken to prevent excessive speculation and maintain market stability. However, it’s important to note that these stocks remain available for trading in the cash market.

Market Performance

On May 14, the equity benchmark indices climbed as retail inflation eased to an 11-month low of 4.83 per cent in April. Buying in Reliance Industries, the country’s most valued firm by market valuation, also added to the optimism. The 30-share BSE Sensex climbed 328.48 points, or 0.45 per cent, to settle at 73,104.61. The NSE Nifty went up 113.80 points, or 0.51 per cent, to 22,217.85. In the broader market, the BSE smallcap gauge climbed 1.79 per cent and midcap index advanced 1.14 per cent.

Conclusion

The F&O ban on these nine stocks is a significant development for investors, particularly those involved in derivative trading. While it restricts trading in the F&O segment, these stocks remain available in the cash market. As the market continues to show positive trends, investors should stay informed about such changes and adjust their strategies accordingly.

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