Ban Stock List Today- F&O Segment
Securities in Ban For Trade Date 10-OCT-2024:
Sr No. | Stock Name |
1 | BANDHANBNK |
2 | BSOFT |
3 | GRANULES |
4 | SAIL |
5 | HINDCOPPER |
6 | MANAPPURAM |
7 | GNFC |
8 | RBLBANK |
9 | IDFCFIRSTB |
10 | PNB |
11 | TATACHEM |
Introduction: What is the Security Ban in F&O Trading?
In the stock market, security-wise bans in Futures & Options (F&O) trading occur when the combined open interest of a security exceeds 95% of the market-wide position limit (MWPL). This measure is enforced to limit excessive speculation and ensure stability in the market.
What Triggers a Security Ban in F&O?
- A stock is banned when the open interest in the F&O segment surpasses 95% of MWPL.
- While new positions cannot be opened, existing positions can still be squared off.
Key Points:
- Market-Wide Position Limit (MWPL): A regulatory threshold to avoid over-exposure to a single stock.
- 95% Rule: Once the combined open interest hits 95% of MWPL, no fresh positions can be initiated.
Why Are Security Bans Important?
Banning certain securities prevents market manipulation and reduces risk, especially during times of excessive speculation. By regulating open interest, these bans protect retail investors from potential volatility and massive losses.