Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
76.05
115.76
76.76
109.13
93.34
95.76
92.47
95.27
95.47
94.38
93.06
84.26
86.40
80.69
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
92.83
92.12
72.55
92.04
86.50
90.46
83.46
84.86
85.40
82.98
81.69
82.13
The goal of the stock ban in F&O is to curb excessive speculation. When a stock's total open interest exceeds 95% of the market-wide position limit (MWPL), the stock exchange imposes an F&O ban. Traders are not allowed to open new positions in the stock that is subject to the F&O Ban during this time. But by squaring off positions, they can decrease their stake in that stock.
There is a chance that a stock may soon be added to the ban list if its MWPL is greater than 80%. A stock has a chance of leaving the ban list in the near future if its MWPL begins to fall below 95% while it is on the list.