Securities in Ban for Trade Date 11-SEP-2024
For the trade date of September 11, 2024, seven securities have been placed under the Futures & Options (F&O) ban list by the stock exchanges. This list is compiled based on the Market Wide Position Limits (MWPL) set by SEBI. When a security crosses the MWPL threshold, it is placed under the ban to control market speculation and volatility.
Securities Under Ban:
- ABFRL (Aditya Birla Fashion and Retail Limited): Known for its diverse portfolio in the fashion and retail sector, ABFRL has faced consistent market volatility.
- BALRAMCHIN (Balrampur Chini Mills Limited): This sugar production giant, sensitive to agricultural and commodity price changes, finds itself in the ban due to high market exposure.
- BANDHANBNK (Bandhan Bank Limited): The financial institution serving micro-finance sectors has been impacted due to high F&O trading activities.
- BIOCON (Biocon Limited): A prominent player in biotechnology, Biocon has faced fluctuations, pushing it under the F&O ban.
- CHAMBLFERT (Chambal Fertilizers & Chemicals Limited): A leading producer in the fertilizers industry, high speculative trading has triggered its inclusion in the list.
- HINDCOPPER (Hindustan Copper Limited): This state-run copper producer often witnesses sharp movements due to commodity market fluctuations.
- RBLBANK (RBL Bank Limited): Known for its retail and commercial banking services, RBL Bank has seen elevated F&O activity, resulting in the ban.
Why Securities are Placed in Ban: Securities are placed in the F&O ban when the open interest for that particular stock exceeds 95% of the MWPL. During the ban, traders are restricted from creating new positions, though they are allowed to square off existing positions. This helps prevent excessive speculation and stabilize the market.
Key Considerations for Traders: Traders should be cautious while trading in these securities, as fresh positions are not allowed until the ban is lifted. The focus should be on managing and closing existing positions to avoid penalties.
