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 | ||
| Angel One Ltd | 91.74 | 99.33 |
| Manappuram Finance Ltd | 102.05 | 98.23 |
| Hindustan Copper Ltd | 95.77 | 92.29 |
| Indian Renewable Energy Development Agency Ltd | 104.66 | 91.47 |
| National Aluminium Co Ltd | 88.15 | 84.01 |
| Possible Entrants | ||
| …………. | …………. | …………. |
| Possible Exits | ||
| National Aluminium Co Ltd | 88.15 | 84.01 |
Introduction to F&O Ban List Companies
Angel One Ltd
Angel One Ltd, established in 1996, is a leading retail brokerage firm in India. It offers stock broking, mutual funds, derivatives, and portfolio management services through its advanced, technology-driven platforms like Angel One App and SmartAPI.
Manappuram Finance Ltd
Manappuram Finance Ltd is a prominent non-banking financial company specialising in gold loans, microfinance, and other financial services. Established in 1949, it caters to diverse customer needs with its widespread branch network.
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.
Indian Renewable Energy Development Agency Limited
Indian Renewable Energy Development Agency works to advance energy efficiency and renewable energy initiatives throughout the country. In addition to promoting the country’s shift to sustainable energy sources and aiding in economic development and environmental preservation, it offers financial support for clean energy projects.
National Aluminium Company Limited
National Aluminium Company Limited is an Indian manufacturer of alumina and aluminum, operating a 22.75 lakh TPA alumina refinery in Odisha and a 4.60 TPA aluminum smelter. Its segments include Chemical and Aluminium, with products like calcined alumina and aluminum ingots. The company also has a 1200 MW thermal power plant and four wind power plants across India.
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.
