Does fno ban affect share price? (increase or decrease or no effect)

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Hi Deepan,

There are 2 types of Ban,

Temporary Ban:

If the open interest of the stock reaches the certain higher point(95%) the exchange will ban the stock until its reaches the specified lower open interest point(80%). In this case there will be no impact on stock price.

Permanent Ban:

There are lot of criteria like Liquidity , Market Cap ect., will be considered by exchange before adding the securities into F&O. If the script is not able to full fill any of the criteria the stock will be excluded from F&O permanently. If the ban is due to some mismanagement of the company like satyam the ban will leads to decrease in stock price.(but  not  always).