Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
72.82
124.01
91.71
100.34
93.68
99.05
105.91
97.07
104.40
96.54
104.91
93.67
95.46
93.20
89.30
86.57
91.79
84.59
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
78.76
89.99
83.82
87.53
78.23
84.29
81.73
83.77
82.71
77.57
82.66
82.28
81.85
74.76
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.