Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
101.40
99.60
91.35
89.03
85.69
84.00
89.27
87.54
101.94
94.90
97.16
93.56
119.70
97.21
139.16
119.14
94.65
91.27
92.65
95.77
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.