The National Stock Exchange (NSE) banned the trading of futures and options (F&O) up to one stock/security on Thursday, September 8, 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 Thursday, September 8, 2022.

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The foreign institutional investors (FIIs) bought shares worth a net Rs 758.37 crore, while domestic institutional investors (DIIs) sold shares worth a net Rs 138.67 crore in the Indian equity market on September 7, as per provisional data available on the NSE.  

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The Sensex fell 168.08 points or 0.28% to 59,028.91 while the Nifty was down by 31.20 points or 0.18% to 17,624.40 at the close of trading on Wednesday. 

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The Sensex moved in a high and low band of 59,166.46 and 58,722.89. There were 12 stocks advancing against 18 stocks declining on the index. 

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The Nifty traded in a range of 17,650.75 and 17,484.30. There were 25 stocks advancing against 25 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.