The National Stock Exchange announced an F&O ban on five stocks on April 17, 2025, as they surpassed 95% of the market-wide position limit (MWPL). The stocks in the F&O ban list today include Indian Renewable Energy Development Agency Ltd [NSE: IREDA], Birlasoft Ltd [NSE: BSOFT], Hindustan Copper Ltd [NSE: HINDCOPPER], Manappuram Finance Ltd [MANAPPURAM], and National Aluminium Co Ltd [NATIONALUM]. Though these stocks will not trade in the derivatives market, they will continue to be active in the cash market.
What does this F&O Ban Signify?
When the open interest of stocks in the futures and options market crosses the MWPL, it reflects the large volume of outstanding derivatives contracts that have yet to be settled. As the open interest for the stocks in the NSE ban list April 17, 2025, above has exceeded 95% of the MWPL, which is the predefined limit to which a company can maintain its open positions, they qualified for this ban.
During this ban period, listed companies cannot open new positions, ensuring market stability by preventing further excessive speculation. Meanwhile, traders will only be allowed to trade in the existing open positions for the listed stocks, applying an offsetting strategy to reduce the outstanding share volume in the derivatives segment. As soon as the open interest moves below 80% of the MWPL, the ban will be withdrawn.
Let’s Check the 5 Stocks Listed Under this F&O Ban Today
Indian Renewable Energy Development Agency Ltd
Indian Renewable Energy Development Agency Ltd. (IREDA) is a public sector financial institution under the Ministry of New and Renewable Energy, established in 1987. It specialises in financing renewable energy projects across sectors like solar, wind, hydro, and waste-to-energy, and is listed under the Nifty Midcap 100 index.
The IREDA stock news reported that the stock was placed under the F&O ban due to increased trading volumes and open interest exceeding 95% of market-wide position limits. In the Q4 of FY25, the company’s net profit has risen 48.7% to ₹501.6 crores on a yearly basis, compared to ₹337.4 crores in the same quarter last year. Total income also rose 37.7% to ₹1915.6 crore from ₹1391.7 crore in Q4FY24.
The stock’s previous close was at ₹176.39 (as of April 16, 2025), surging 5.65%.
Birlasoft Ltd
Birlasoft Ltd., part of the CK Birla Group, is a mid-cap IT services firm delivering digital transformation, cloud, AI, and ERP solutions across key sectors like BFSI, manufacturing, and healthcare. In Q3 FY2024- 25, the company posted a robust YoY jump driven by strong demand and operational efficiency. However, despite solid fundamentals, the stock entered the F&O ban list due to open interest breaching SEBI’s threshold. The Birlasoft share price closed at ₹372.10 on April 16, 2025.
Hindustan Copper Ltd
On April 16, 2025, Hindustan Copper Ltd. closed at ₹209.69, maintaining its recent trading levels. At this price point, the company has a price-to-earnings (P/E) ratio of 50.36, indicating a relatively high valuation compared to its earnings.
Hindustan Copper Ltd. is a public sector undertaking under the Ministry of Mines, Government of India. It is India’s only vertically integrated copper producer, engaged in mining, beneficiation, smelting, refining, and continuous cast rod manufacturing. The company’s stock is part of the Nifty 500 index, which includes the top 500 listed companies on the National Stock Exchange of India.
Manappuram Finance Ltd
On April 16, 2025, Manappuram Finance Ltd. closed 0.22% higher at ₹226.82. With a market capitalisation of ₹19,329.18 crore and a P/E ratio of 9.74, the company appears moderately valued. Listed on the Nifty 500 index, Manappuram operates in the NBFC sector, offering services like gold loans, microfinance, and vehicle finance. Despite stable fundamentals, the stock remains on the F&O ban list due to high open interest breaching SEBI’s prescribed limits.
National Aluminium Co Ltd
On April 16, 2025, National Aluminium Company Ltd (NALCO) closed marginally lower at ₹151.22, slipping 0.15% from its previous close. NALCO, in its Q3 report for FY2024-25, reported a net profit of ₹3,246 crore and revenue from operations of ₹11,520 crore, indicating a sharp upward movement from ₹1,044 crore and ₹9,570 crore in the previous year, marking a 211% surge in profit and a 20% rise in revenue.
As a Navratna PSU and despite being on the derivative ban list, NALCO remains a prominent player in non-ferrous metals, backed by strong fundamentals and consistent operational performance.
Conclusion
The F&O banned stocks NSE represents a mechanism that serves as a regulatory framework that prevents excessive speculation and maintains market stability, particularly during high-activity periods like weekly expiries. For traders, this ban restricts the opening of new derivative positions in these securities, allowing only the squaring off of existing positions. It’s crucial to monitor open interest levels and adhere to exchange guidelines to avoid penalties.
With the current MWPL decreasing to 81.54%, Birlasoft seems to be the stock most likely to exit the ban period sooner than the rest.
Stay tuned to Torus Digital for regular updates on the financial market, especially the stock market today and every day, to make well-informed investment decisions.
