The National Stock Exchange (NSE) banned the trading of futures and options (F&O) up to three stocks/securities on Wednesday, August 17, 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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Balrampur Chini Mills, Tata Chemicals Limited and Delta Corp are the stocks/securities that have been placed on the National Stock Exchange’s futures and options (F&O) ban for trade on Wednesday, August 17, 2022.

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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.