NSE F&O Ban List: The National Stock Exchange (NSE) has banned 9 securities in the futures and options (F&O) trading segment for Monday, January 27, 2025. This ban will directly affect the traders of these stocks as they can trade in these stocks only to reduce positions, but there will be a ban on adding new positions. In this article, we will explain to you in detail why shares come in the F&O ban list, what its effect is on traders, and which 9 companies’ shares are included in it.
If we talk about those shares that NSE has banned, let us tell you that the shares of 9 companies have been put on the F&O ban list, they are as follows:
| Name of the share | Sector |
|---|---|
| Aditya Birla Fashion & Retail (ABFRL) | Retail and Fashion |
| Bandhan Bank | Banking |
| Can Fin Homes | Housing Finance |
| Dixon Technologies | Electronics Manufacturing |
| Indiamart | E-commerce |
| L&T Finance | Finance |
| Manappuram Finance | Gold Loan and Finance |
| Mahanagar Gas | City Gas Distribution |
| Punjab National Bank (PNB) | Public Sector Banks |
The main reason for including a stock in the F&O ban list is its Market Position Limit (MWPL) .
- MWPL: This is the maximum limit of derivative contracts that can be opened on a stock.
- When the MWPL of a stock reaches 95% or more, it goes into the F&O ban list.
- After being included in the banned list, there is a ban on taking new positions in the shares.
Apart from this, if there is high buying or selling pressure in any stock, it can affect the stability of the stock market. In such a situation, it is put on the ban list. There may be many other reasons due to which it can be included in the ban list, so let us now know what effect it will have on traders even after its ban.
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What impact does the F&O ban have on traders?
- New positions restricted:
Traders can only reduce their positions in these stocks. Adding new positions may lead to action by SEBI. - Higher Risk:
Banned stocks have higher volatility and risk than other stocks in the market. - Impact on liquidity:
After being included in the banned list, the liquidity of these shares decreases, which may make it difficult for traders to exit at the right price.
There can be many other factors that can affect the traders. If you are a new trader, you must do your own research about it once and only then take any decision.
A market condition in the last session
On January 24, 2025, the domestic market was volatile.
- Sensex: Closed at 76,190.46, down 329.92 points.
- Nifty: Closed at 23,092.20, down 113.15 points.
This decline was mainly due to weak signals from global markets and selling in select stocks.
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What should traders do?
If we talk about what traders should do after this ban, if you are trading on these shares then we are advising you to stay away from these shares for some time, so do not trade on these shares for some time. Apart from this, you must read these points given below once:
- Seek expert advice: Consult a financial advisor before investing in these stocks.
- Reduce positions: Focus on closing existing positions only.
- Assess the risk: Keep volatility in mind when investing in high-risk stocks.
Conclusion
The main reason for the F&O ban imposed by NSE is the MWPL exceeding 95%. This ban is implemented to protect investors and traders from risk. This time the banned list includes shares of 9 companies, including major names like Bandhan Bank, Manappuram Finance, and Punjab National Bank. Traders should change their strategy in this situation and focus only on reducing positions. It is always advisable to take advice from a financial expert before investing.
Disclaimer: This information is for educational purposes only. Do your research and consult an expert before investing.
