The National Stock Exchange (NSE) has prohibited trading in the Futures and Options (F&O) segment for a total of two scrips on March 27, 2023. According to the NSE, the securities are restricted in the F&O segment because they have exceeded 95 percent of the market-wide position limit (MWPL).
Indiabulls Housing Finance and Hindustan Aeronautics Limited (HAL) are the two stocks on the stock exchange’s current F&O ban list, while Biocon is not included. The list of securities included in the F&O limit for trading is updated daily by NSE.
According to the NSE, the stock exchange has placed the derivative contracts for the aforementioned securities under the ban because they have exceeded 95% of the market-wide position limit.
The stock exchange stated, “It is hereby informed that all clients/members shall trade in derivative contracts of the said securities only to reduce their positions through offset positions.” Added.
During the F&O restriction period, no new position is permitted for any F&O contract in that stock. The stock exchanges set the Market-Wide Position Limit (MWPL), 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 go through a restriction period.
In the interim, for Monday, the Indian records might see a higher opening as SGX Clever, Singapore Clever which is the Indian Clever exchanged on the Singapore Stock Trade, demonstrates a green opening for the Indian financial exchange today. Is.