Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
79.24
115.67
102.81
95.56
96.56
91.95
95.88
91.19
94.69
91.92
92.39
91.03
91.60
88.38
90.42
87.89
89.17
86.80
BALRAMCHIN
88.64
86.64
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
87.19
86.52
85.16
87.44
84.68
87.52
84.37
87.94
83.80
82.98
81.73
81.79
80.76
81.06
85.99
78.58
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.