Shares of Sammaan Capital Ltd. surged over 8% to ₹149.10 in early trade on Monday, September 29, after the stock came out of the Futures and Options (F&O) ban list.
The ban was imposed as the stock’s open interest (OI) had crossed 95% of the market-wide position limit (MWPL). Under exchange rules, once a stock enters the ban period, no new positions are allowed in F&O contracts, except for reducing existing ones. This often restricts speculative activity and impacts the stock’s trading volume.
On Monday, with OI dropping below 80% of MWPL, the restriction was lifted, triggering fresh buying interest in Sammaan Capital. Market experts suggest that the exit from the ban allowed traders to re-enter positions, fueling today’s rally.
Understanding F&O ban rules:
When OI on a stock exceeds 95% of the MWPL, its F&O contracts are banned to curb excessive speculation. The prohibition is lifted once OI falls below 80%. These measures are designed to maintain market stability and avoid excessive build-up of speculative bets.
At 9:38 AM, Sammaan Capital was trading at ₹149.10, up 8.18% from the previous close of ₹137.82.
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