Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
87.34
86.05
89.30
86.26
100.87
93.82
86.11
83.29
82.79
81.81
83.12
80.15
89.48
86.46
110.55
98.55
104.52
90.97
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
87.45
87.84
85.58
85.97
91.01
94.35
83.88
82.84
84.93
85.86
86.23
84.98
82.20
85.23
85.75
83.57
81.75
80.25
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.