1. DIYTechnicalAnalysis is a private community of traders and investors interested in building wealth from Indian equity market. You can become a member with a one time registration fee of ₹199. Click here to become a member

Impact of Ban in F&O on stock price

Discussion in 'Traders Coffee Shop' started by madhusudhanps, Oct 9, 2012.

  1. madhusudhanps

    madhusudhanps Member

    Joined:
    Aug 20, 2012
    Messages:
    45
    Likes Received:
    6
    Hi Shabbir,

    Can you advice the impact of ban in F&O will have on it stock price and what is the necessity of such ban.
     
    madhusudhanps, Oct 9, 2012
    Share #1
  2. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    That stock cannot be shorted any more in Futures and so now only can be traded in cash market.
     
    shabbir, Oct 9, 2012
    Share #2
  3. madhusudhanps

    madhusudhanps Member

    Joined:
    Aug 20, 2012
    Messages:
    45
    Likes Received:
    6
    Thanks shabbir. What might be impact of this on Stock price and Call/Put option prices.
    People holding options can't they do anything, do they have to bare entire losses.
     
    madhusudhanps, Oct 10, 2012
    Share #3
  4. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    Can you share any such stock because it will be ideally getting out of FnO at expirty
     
    shabbir, Oct 10, 2012
    Share #4
  5. madhusudhanps

    madhusudhanps Member

    Joined:
    Aug 20, 2012
    Messages:
    45
    Likes Received:
    6
    HDIL banned in F&O and stock is sinking
     
    madhusudhanps, Oct 10, 2012
    Share #5
  6. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    As per the exchange regulations, only existing trades can be settled during the ban phase. Fresh positions cannot be created.
     
    shabbir, Oct 10, 2012
    Share #6
  7. chequesuraj

    chequesuraj Member

    Joined:
    May 3, 2012
    Messages:
    104
    Likes Received:
    8
    Shabbir,

    whats the criteria for ban in F&O...means what leads it to and how it get cleared...pls explain...
     
    chequesuraj, Oct 10, 2012
    Share #7
  8. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    Rule for ban is simple. Violation of exchange rules.
     
    shabbir, Oct 10, 2012
    Share #8