Indiabulls Housing Finance and Vodafone Idea have been banned for trading under the futures and options segment by the National Stock Exchange (NSE) on Monday, December 13, 2021. According to NSE, security under the F&O segment has been banned as they have crossed 95% of the market-wide position limit (MWPL).
The National Stock Exchange stated that the derivative contracts in the two securities mentioned have exceeded 95% of the market-wide position limits and are therefore currently placed in the embargo period by the stock exchange.
NSE further said, “It is informed that all the clients/members shall trade in derivative contracts of the said security only to reduce their position by way of offsetting positions. Any increase in open positions will be subject to reasonable penal and Disciplinary action will be taken.”
No fresh positions are allowed for any F&O contract in that particular stock under the F&O restriction period. The MWPL (market-wide position limit) is set by the stock exchanges which is the maximum number of open contracts (open interest) at any given time, therefore, the F&O contracts of that stock enter a restriction period if the open interest is higher than the MWPL. has exceeded 95%.
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