Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
93.82
85.80
98.53
80.45
86.46
80.04
98.55
82.52
90.97
81.63
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
87.84
88.24
85.97
88.85
94.35
90.20
82.84
82.07
85.86
83.47
84.98
85.27
81.94
82.13
83.57
80.87
84.13
82.81
81.73
82.13
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
98.53
80.45
86.46
80.04
98.55
82.52
90.97
81.63
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.