Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
94.79
91.86
96.46
89.36
101.07
79.10
99.10
96.12
89.36
86.58
87.57
84.74
98.77
90.08
97.22
90.57
79.93
93.07
99.45
92.74
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
84.68
82.59
84.37
81.67
85.04
84.62
87.39
84.60
87.57
84.74
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.