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Impact of Ban in F&O on stock price

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

  1. madhusudhanps

    madhusudhanps Member

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    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.
     
  2. shabbir

    shabbir Administrator Staff Member

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    That stock cannot be shorted any more in Futures and so now only can be traded in cash market.
     
  3. madhusudhanps

    madhusudhanps Member

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    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.
     
  4. shabbir

    shabbir Administrator Staff Member

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    Can you share any such stock because it will be ideally getting out of FnO at expirty
     
  5. madhusudhanps

    madhusudhanps Member

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    HDIL banned in F&O and stock is sinking
     
  6. shabbir

    shabbir Administrator Staff Member

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    As per the exchange regulations, only existing trades can be settled during the ban phase. Fresh positions cannot be created.
     
  7. chequesuraj

    chequesuraj Member

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    Shabbir,

    whats the criteria for ban in F&O...means what leads it to and how it get cleared...pls explain...
     
  8. shabbir

    shabbir Administrator Staff Member

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    Rule for ban is simple. Violation of exchange rules.