
National Stock Exchange has prohibited trading in just one stock under the futures and options (F&O) segment on Wednesday, September 7, 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.
The stock exchange’s F&O ban stock list still includes Delta Corp. as of today. Every day, the NSE updates its list of securities that are banned from trading in F&O. Casinos are owned and operated by the Indian gambling and hospitality firm Delta Corp. (live, electronic and online).
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 Wednesday, SGX Nifty, Singapore Nifty, which is the Indian Nifty traded on the Singapore Stock Exchange, indicates a gap down opening for the Indian stock market today, Indian indices could see a negative start.