The derivative contracts in the below mentioned security has crossed 95% of the Market-Wide Position Limit (MWPL) and are currently in the ban period. It is hereby informed that all clients/members shall trade in the derivative contracts of said security only to decrease their positions through offsetting positions. Any increase in open positions shall attract appropriate penal and disciplinary action in accordance with the Circular No. NSCC/F&O/C&S/365 dated August 26, 2004. (+)
The Stock Exchanges impose an F&O ban on certain stocks. The exchanges set an MWPL on stocks traded in the F&O segment. This is the maximum number of contracts that can be open at any time called the Open Interest. If the Open Interest of any stock crosses 95% of the MWPL (All futures and options contracts of that stock), all F&O contracts of that stock enter a ban period.
When the ban is applied, traders are not allowed to open fresh or new positions in those particular stocks. However, traders can reduce their position in those stocks by squaring off positions during this ban period. The ban is reversed only if the open interest falls below 80%.