Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
122.84
117.75
77.45
100.37
104.10
97.43
89.05
87.07
87.35
86.35
88.63
86.01
113.05
107.43
89.31
83.27
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
83.64
86.93
85.88
86.87
78.82
85.51
85.15
85.50
85.65
84.44
80.18
84.38
81.42
82.35
77.65
81.98
77.52
81.50
79.89
80.61
71.57
80.17
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.