April 18: NSE Bans Ten Stocks from F&O Trading

18 Apr 2024 , 10:25 AM

On April 18, 2024, the National Stock Exchange (NSE) took action by banning trading on ten specific stocks within the Futures and Options (F&O) segment. This decision was prompted by these stocks surpassing 95% of the market-wide position limit (MWPL) as outlined by the NSE guidelines.

Notably, while these stocks are restricted from F&O trading, they remain available for trading in the cash market, offering investors an alternative avenue.

Among the ten stocks affected by the ban are Balrampur Chini Mills, Bandhan Bank, GNFC (Gujarat Narmada Valley Fertilizers Chemicals), Hindustan Copper, Vodafone Idea, Metropolis Healthcare, National Aluminium Company, Piramal Enterprises, SAIL, and ZEEL.

It’s essential to note that the NSE updates this list daily, reflecting changes in the market dynamics and ensuring regulatory compliance.

Regarding trading restrictions, investors are permitted to engage in derivative contracts of the banned stocks solely for the purpose of reducing existing positions. The initiation of new positions in the F&O contracts of these stocks is strictly prohibited under the current circumstances.

Any infringement of these regulations is met with appropriate penalties and disciplinary actions, underscoring the importance of adherence to the NSE guidelines.

Additionally, reflecting on market performance, April 16 witnessed a downturn in both the Sensex and Nifty indices. This decline was primarily attributed to heavy selling in IT stocks, compounded by weak global trends and concerns over escalating tensions in the Middle East.

Specifically, the Sensex experienced a decline of 456.10 points, closing at 72,943.68, with intraday lows reaching 72,685.03. Similarly, the Nifty closed at 22,147.90, down by 124.60 points from the previous session’s close.

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