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
| Company Name | Previous MWPL % | Current MWPL % |
| Securities In Ban | ||
| Premier Explosives Limited | 129.17 | 102.72 |
| PNB Housing Finance Limited | 85.04 | 83.75 |
| RBL Bank Limited | 106.52 | 103.98 |
| Titagarh Rail Systems Limited | 89.03 | 114.66 |
| Possible Entrants | ||
| LIC Housing Finance Limited | 85.73 | 86.29 |
| Steel Authority of India Limited | 79.85 | 81.41 |
| Possible Exits | ||
| PNB Housing Finance Limited | 85.04 | 83.75 |
Introduction to F&O Ban List Companies
Premier Explosives Limited
Premier Explosives Limited is a leading Indian company in the defense and aerospace industry, specializing in the manufacturing of explosives, propellants, and defense-related products. It supplies to the Defence Research and Development Organisation (DRDO), ISRO, and various military institutions, contributing to the nation’s self-reliance.
PNB Housing Finance Ltd
PNB Housing Finance Ltd is one of India’s leading housing finance companies, offering services such as home loans, loans against property, and construction finance. It primarily serves individual and corporate clients while promoting affordable housing. Supported by Punjab National Bank, the company plays a vital role in the growth of India’s housing sector.
RBL Bank Ltd
RBL Bank Ltd is a prominent private sector bank in India, offering a wide range of services including retail banking, corporate banking, and financial solutions. It specializes in digital banking, credit cards, loans, and investment solutions, providing services across the country through its branches and digital network.
Titagarh Rail Systems Limited
Titagarh Rail Systems Limited is a leading rail transportation solutions company in India, engaged in manufacturing passenger coaches, freight wagons, metro trains, and defense equipment. The company plays a significant role in the development of railway infrastructure both domestically and internationally. Known for its advanced technology and high-quality manufacturing, it is contributing strongly to railway modernization and supporting the vision of an Atmanirbhar Bharat (self-reliant 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.
