Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
89.82
85.05
85.19
81.89
95.48
90.04
114.73
92.72
86.92
99.68
87.25
96.49
75.32
107.82
82.54
196.43
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
82.92
83.53
88.64
93.55
70.49
80.25
85.13
90.39
90.94
87.78
79.52
83.28
76.53
81.33
80.92
82.84
78.70
86.79
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.