What is an F&O Ban?
F&O Ban refers to a situation where trading in futures and options (F&O) of specific stocks is restricted. Stocks are placed under this ban when their market-wide position limit exceeds 95%. This measure prevents excessive speculation and aims to maintain market stability and integrity.
F&O Ban List
| Symbol | Previous MWPL % | Current MWPL % |
| Securities In Ban | ||
| ………… | ………… | ………… |
| Possible Entrants | ||
| Hindustan Copper Ltd | 86.91 | 91.25 |
| Birlasoft Ltd | 79.85 | 85.15 |
| Manappuram Finance Limited | 80.75 | 84.85 |
| Possible Exits | ||
| ………… | ………… | ………… |
Introduction to F&O Ban List Companies
Hindustan Copper Ltd
Hindustan Copper Limited, incorporated on November 9, 1967, is India’s sole copper ore-producing mining company and a vertically integrated producer of refined copper. It operates major mining complexes in Rajasthan, Jharkhand, and Madhya Pradesh, producing and selling refined copper and by-products.
Birlasoft Limited
Birlasoft Limited is based in India and offers a range of IT and consultancy services. Its digital solutions include data analytics, cloud, and blockchain, while enterprise services cover CRM, supply chain management, and IT transformation. Key solutions are intelliAsset, TruView CLM, and AKOYA, serving multiple industries.
Manappuram Finance Limited
Manappuram Finance Limited is financial company in India that specializes in providing various credit and financial services to people across the country. They primarily offer loans secured by gold jewelry both in-person and online. They also extend microfinance loans to individuals in rural and semi-urban areas along with other financial products like home loans and insurance.
F&O Ban Stocks List – FAQs
How Does An F&O Ban Work?
An F&O ban works by restricting the initiation of new futures and options positions for specific stocks. Traders can only square off existing positions. This limitation is enforced when the market-wide position limit exceeds 95%, aiming to curb excessive speculation and maintain market stability.
What are the criteria for a ban list in F&O?
The criteria for a ban list in F&O include stocks exceeding 95% of the market-wide position limit. This limit is calculated based on the total number of open interest positions. Once breached, new F&O positions cannot be initiated, but existing ones can be squared off.
When does trading resume once it is in the F&O ban list?
Trading in F&O for a stock resumes once its open interest falls below 80% of the market-wide position limit. This reduction indicates decreased speculative activity, allowing the stock to exit the ban list, and new futures and options positions can be initiated again.
Why are stocks banned in F&O?
Stocks are banned in F&O to prevent excessive speculation and market manipulation. When open interest exceeds 95% of the market-wide position limit, trading restrictions are imposed to maintain market integrity, ensuring stability and protecting investors from potential volatility and systemic risks.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
