Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
107.91
105.21
99.58
91.63
91.90
84.63
95.18
91.77
93.56
89.73
96.86
91.24
103.47
95.96
95.30
91.17
101.62
88.85
97.21
88.82
77.40
102.74
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.