What is the F&O ban period?
When the open interest in a stock's futures and options crosses 95% of its market-wide position limit (MWPL), NSE puts the stock in the ban period. Traders can then only reduce their positions; new positions are not allowed until the open interest falls below 80%.
What is MWPL?
The market-wide position limit: the most open interest (in futures-equivalent shares) that all traders together may hold in a stock's F&O contracts. NSE sets it from the shares freely traded.
When is the ban list published?
NSE publishes the next trading day's list in the evening, after the close. This page shows today's list, the next day's list once it is out, and every F&O stock's limit used at the last close.
Can I buy the shares of a stock in the F&O ban?
Yes. The ban applies only to new futures and options positions; buying and selling the shares themselves is not affected.
What happens if a trader adds positions during the ban?
Exchanges charge a penalty on the increase in open interest. This page is information only, not investment advice.