On Wednesday, three stocks were put on the ban list under the future and option (F&O)segment by National Stock Exchange (NSE). According to NSE, all securities are under the F&O segment as they crossed 95 per cent of market wide position limit (MWPL).
Balrampur Chini and Tata Chemical are among the stocks under the F & O ban on NSE today. Every day, the NSE updates the list of securities in F&O for trading. The derivatives contracts have crossed 95 per cent of the market-wide position limit. Currently, the stocks are put in a ban period by the stock exchange, said NSE.
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“It is hereby informed that all clients/members shall trade in the derivative contracts of said securities only to decrease their positions through offsetting positions,” the stock exchange said. “Any increase in open positions shall attract appropriate penal and disciplinary action,” NSE added.
The stock exchange sets the market-wide position limit with no limit of contracts which can be open at any time called open interest; during the ban period, the F&O contracts of the stock open, which crosses 95 per cent of MWPL. The fresh position is not allowed for any F&O contracts in that particular stock under the F&O ban period.
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