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.
PREVIOUS MWPL %
STOCKS
79.06
91.9
86.79
87.61
60.13
90.96
80.15
88.97
88.61
84.89
88.08
79.39
CURRENT MWPL %
81.86
80.6
82.03
80.2
91.95
90.99
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.