The National Stock Exchange has restricted trading in just one stock for the futures and options (F&O) sector on Tuesday, August 23, 2022. (NSE). According to the NSE, the counter has been placed on hold in the F&O segment since it exceeded 95% of the MWPL.
a chemical supply Tata Chemicals is still included on the stock exchange’s F&O ban list as of right now. Every day, the NSE updates its list of securities that are banned from trading in F&O.
Tata Chemicals, a member of the Tata Group, is one of the world’s top manufacturers of soda ash, with production sites in India, the United Kingdom, Kenya, and the United States.
The stock exchange has currently placed the derivative contracts in the aforementioned securities that have exceeded 95% of the market-wide position limit under the ban period, according to NSE.
“It is hereby informed that all clients/members shall trade in the derivative contracts of said securities 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.
For any of the F&O contracts on that specific stock while it is in the F&O ban period, no new holdings are permitted. The MWPL (market-wide position limit), which is the maximum number of contracts that may be open at any given moment (open interest), is determined by the stock exchanges. As a result, if the open interest of a stock surpasses 95% of the MWPL, the F&O contracts for that stock enter a ban period.
As for Tuesday, SGX Nifty, Singapore Nifty, the Indian Nifty traded on the Singapore Stock Exchange, forecasts a weaker opening for the Indian stock market today. As a result, Indian indexes may have a negative start.
