Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
89.25
85.09
90.60
89.61
81.67
83.58
83.30
81.20
88.62
95.75
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
91.88
90.66
78.83
93.39
82.25
82.75
87.91
87.04
78.73
84.09
86.41
86.13
78.94
81.96
82.90
91.27
78.99
82.34
83.87
82.80
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.