NSE F&O Ban: No stock has been put under ban on Friday, September 2, 2022

The National Stock Exchange (NSE) banned the trading of futures and options (F&O) up to zero stock/security on Friday, September 2, 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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The Sensex dropped 770.48 points or 1.29% to 58,766.59 and the Nifty was down by 216.50 points or 1.22% to 17,542.80 on Thursday.

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The Sensex touched a high and low of 59,309.79 and 58,522.57, respectively. There were 7 stocks advancing against 23 stocks declining on the index.

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The Nifty traded in a range of 17,695.60 and 17,468.45. There were 13 stocks advancing against 37 stocks declining 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.