The National Stock Exchange has prohibited trading in a total of two scrips beginning on Monday, March 20, 2023, within the Futures and Options (F&O) segment (NSE). The securities are limited under the F&O segment because, according to NSE, they have exceeded 95% of the MWPL.
The stock market has kept the chemical stocks GNFC (Gujarat Narmada Valley Fertilizers & Chemicals Ltd) and Indiabulls Housing Finance shares on the F&O ban list for today. The list of securities included in the F&O limit for trading is updated daily by NSE.
According to NSE, the stock exchange has currently placed the derivative contracts for the aforementioned equities in the ban period since they have exceeded 95% of the market wide position limit.
The stock exchange stated that all clients and members must only trade in derivative contracts involving the aforementioned securities in order to reduce their positions by way of offsetting positions. Added.
Under the F&O restriction period, no new positions are permitted for any F&O contract in a specific stock. The stock exchanges determine the MWPL (Market-Wide Position Limit), which is the maximum number of contracts that can be opened at any given time (Open Interest). If Open Interest exceeds 95% of the MWPL, F&O contracts for that stock are subject to a restriction period.
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