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
CURRENT MWPL %
105.76
105.25
94.56
99.94
99.12
97.48
101.47
96.49
97.79
95.80
96.84
94.53
93.23
91.32
93.37
90.82
85.43
83.50
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
86.45
88.55
78.05
83.60
88.29
84.04
76.47
84.02
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.