The National Stock Exchange (NSE) has banned the trading of futures and options (F&O) up to three stocks/securities on Thursday, June 23, 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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Indiabulls Housing Finance, RBL Bank 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 Thursday, June 23, 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.