Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
100.66
90.20
99.84
92.95
92.12
102.01
108.92
102.72
88.01
105.77
97.10
90.12
93.06
89.99
87.67
86.70
88.31
83.44
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
87.16
88.95
84.74
89.75
84.11
89.23
81.32
85.01
88.70
88.52
82.30
84.45
80.90
83.81
81.89
81.92
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.