Only one stock has been restricted for trading by the National Stock Exchange (NSE) under the Futures and Options (F&O) segment on Wednesday, May 25, 2022. According to NSE, the security has been banned under the F&O segment as it has crossed 95% of the market-wide position limit (MWPL).
Indiabulls Housing Finance is the only stock to continue under the F&O ban, while Gujarat Narmada Valley Fertilizers and Chemicals (GNFC) and Delta Corp have been dropped from the list. Share Market For today. NSE updates the list of securities in F&O restrictions for trading daily.
NSE said the derivative contracts in the mentioned securities have crossed 95% of the market-wide position limits and are therefore currently placed in the ban period by the stock exchange.
“It is hereby informed that all the clients/members shall trade in the derivative contracts of the said securities only to reduce their position by way of offsetting positions,” the stock exchange said. “Any increase in open positions will attract appropriate penalty and disciplinary action,” the NSE added.
No fresh positions are allowed for any F&O contract in that particular stock under the F&O restriction period. MWPL (market-wide position limit) is set by stock exchanges which is the maximum number of open contracts at any given time (open interest), therefore, F&O contracts of that stock enter a restriction period if the open interest is MWPL. has exceeded 95%.