PVR, Delta Corp, L&T Finance under F&O ban on NSE today

F&O ban: A total of three stocks are under the ban list of Futures and Options (F&O) on National Stock Exchange (NSE) today, January 23. These securities have been put on ban under the F&O segment as they have crossed 95 per cent of the market-wide position limit (MWPL), as per the NSE.

PVR, Delta Corp and L&T Finance Holdings Ltd are the stocks that are in the F&O ban list for today. The NSE updates the F&O ban list every day.  

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What Is the Market- wide position limit?

MWPL refers to the maximum open position in futures and options on an underlying across exchanges. At the end of each day the Exchange disseminates the aggregate open interest across all Exchanges in the futures and options on individual scrips along with the market wide position limit for that scrip and tests whether the aggregate open interest for any scrip exceeds 95 per cent of the market wide position limit for that scrip.

If yes, the Exchange takes note of open positions of all client/ TMs as at the end of that day in that scrip, and from next day onwards the client/ TMs should trade only to decrease their positions through offsetting positions till the normal trading in the scrip is resumed.

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The normal trading in the scrip is resumed only after the aggregate open interest across Exchanges comes down to 80 per cent or below of the market wide position limit.

A facility is available on the trading system to display an alert once the open interest on the NSE in the futures and options contract in a security exceeds 60 per cent of the market wide position limit specified for such security. Such alerts are presently displayed at time intervals of 10 minutes.

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