Only one stock is prohibited for trading as on Wednesday, March 16, 2022, under the Futures and Options (F&O) segment. National Stock Exchange (NSE), According to NSE, the over the counter has been banned under the F&O segment as it has crossed 95% of the market-wide position limit (MWPL).
Chini stock Balrampur Chini, which was part of the ban in the previous session, remains the only stock under F&O ban by the stock exchange for today. NSE updates the list of securities prohibited for trading daily. Balrampur Chini Mills Limited is one of the leading sugar manufacturing companies in India.
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 contracts that can be open (open interest) at any given time, therefore, F&O contracts of that stock enter a restriction period if open interest MWPL has crossed 95%.
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