The National Stock Exchange (NSE) has banned the trading of futures and options (F&O) up to zero stock/security on Monday, July 4, 2022.

Also Read| New labour codes: All you need to know

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

Also Read| Inflation, gun violence sinks Biden’s approval rating to record low: Report

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.

Also Read| Why US inflation is going up and when will it come down

“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.

Also Read| Pallonji Mistry: All you need to know about the ‘phantom of Bombay house’

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

Also Read| Mukesh Ambani’s daughter Isha to be named chair of Reliance Retail: Report

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

Also Read| Poor nation’s pricey mess: Why Zimbabwe hiked interest rate by 200%

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.