Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
83.82
81.88
117.81
112.87
101.79
100.60
96.37
93.85
90.03
87.41
89.17
84.52
109.58
99.35
73.96
111.39
93.40
108.71
88.84
106.02
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.