The National Stock Exchange (NSE) has banned the trading of futures and options (F&O) up to three stocks/securities on Wednesday, March 30, 2022. According to the NSE, these stocks are prohibited in the F&O sector because they have exceeded 95% of the market-wide position limit (MWPL).
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Vodafone Idea, PVR, and Sun TV Network are the stocks/securities that have been placed on the National Stock Exchange’s futures and options (F&O) ban for trade on Wednesday, March 30, 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. “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. 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 MWPL.