NSE F&O Ban: No stock has been put under ban on Monday, August 29, 2022

The National Stock Exchange (NSE) banned the trading of futures and options (F&O) up to zero stock/security on Monday, August 29, 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). 

The Sensex jumped 59.15 points or 0.10% to 58,833.87 and the Nifty was up by 36.45 points or 0.21% to 17,558.90 on Friday.

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The Sensex touched a high and low of 59,321.65 and 58,722.69, respectively. There were 21 stocks advancing against 9 stocks declining on the index.

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The Nifty traded in a range of 17,685.85 and 17,519.35. There were 34 stocks advancing against 15 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.

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.