Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
82.81
80.78
95.65
91.46
103.02
93.99
88.13
80.63
92.41
85.28
123.45
96.41
78.23
103.74
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
79.09
94.24
82.85
80.81
86.29
85.31
77.02
80.92
87.42
81.95
77.70
81.14
82.12
88.09
87.71
82.06
81.77
83.52
86.94
85.91
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.