The National Stock Exchange (NSE) banned the trading of futures and options (F&O) up to one stock/security on Wednesday, September 7, 2022.

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According to the NSE, stocks are prohibited in the F&O sector because they have exceeded 95% of the market-wide position limit (MWPL).  

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Delta Corp is the stock/security that has been placed on the National Stock Exchange’s futures and options (F&O) ban for trade on Wednesday, September 7, 2022.

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The foreign institutional investors (FIIs) bought shares worth a net Rs 1144.53 crore, while domestic institutional investors (DIIs) purchased shares worth a net Rs 632.97 crore in the Indian equity market on September 6, as per provisional data available on the NSE. 

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The Sensex slipped 48.99 points or 0.08% to 59,196.99 and the Nifty was down by 10.20 points or 0.06% to 17,655.60 on Tuesday.

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The Sensex touched a high and low of 59,566.67 and 58,974.26, respectively. There were 9 stocks advancing against 20 stocks declining, while 1 stock remained unchanged on the index.

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The Nifty traded in a range of 17,764.65 and 17,587.65. There were 20 stocks advancing against 29 stocks declining, while 1 stock remains unchanged on the index.

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The derivative contracts in the aforementioned securities have exceeded 95% of the market-wide position limit and have thus been placed in a ban period by the stock exchange.

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“It is hereby informed that all clients/members shall trade in the derivative contracts of said security only to decrease their positions through offsetting positions,” the stock exchange said.

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“Any increase in open positions shall attract appropriate penal and disciplinary action,” NSE added.

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During the F&O ban period, no new positions are permitted for any of the F&O contracts in that stock.

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The stock exchanges set the MWPL (market-wide position limit), which is the maximum number of contracts that can be open at any moment (Open Interest) thus, the F&O contracts of that stock enter a ban period if the open interest exceeds 95% of the MWP.