The National Stock Exchange has prohibited trading in a total of three equities under the futures and options (F&O) segment beginning on Tuesday, August 16, 2022. (NSE). The securities have been prohibited from trading in the F&O segment because, according to the NSE, they have exceeded 95% of the MWPL.
Tata Chemicals has been added to the stock ban list for today, while Balrampur Chini and Delta Corp have been removed off the stock exchange’s F&O ban list for Tuesday. Every day, the NSE updates its list of securities that are banned from trading in F&O.
“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.
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.
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.
Singapore Nifty, the Indian Nifty traded on the Singapore Stock Exchange, predicts a gap-up opening for the Indian stock market today, so Indian indices may begin the day strongly. On Friday, the Nifty extended gains for a sixth straight session as the benchmark BSE Sensex increased by 130 points. Due to a public holiday on Monday, the stock market was closed.