Author: Sachin Gupta
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
93.59
89.25
91.28
85.30
94.90
98.36
89.61
90.60
84.11
83.30
PREVIOUS MWPL %
STOCKS
CURRENT MWPL %
92.28
91.88
77.05
88.62
82.68
82.25
78.20
87.91
83.22
82.67
88.51
86.41
78.41
82.91
79.61
82.90
77.56
80.79
79.58
83.87
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.