Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
91.77
90.28
88.26
87.10
87.43
88.77
95.57
94.87
83.50
81.48
88.39
84.81
97.85
91.98
88.73
89.10
79.56
101.36
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
89.74
91.28
89.76
90.58
68.88
80.84
84.27
87.67
89.59
92.37
85.90
85.53
87.40
88.21
80.75
81.27
79.78
85.23
76.96
86.30
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.