Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
93.06
89.82
88.46
85.19
98.04
95.48
89.50
80.92
102.91
93.00
76.00
114.73
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
82.28
82.92
85.25
86.92
87.87
88.64
80.73
81.67
82.85
85.13
84.47
90.94
81.20
81.43
79.04
87.25
73.90
82.85
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.