Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
83.00
80.67
78.80
113.39
83.63
98.47
88.11
84.29
124.21
118.53
88.61
87.48
79.84
102.87
83.62
82.07
85.88
82.80
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
82.07
83.62
88.11
84.29
85.88
82.80
83.00
80.67
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.