One Stock Exits, And One Remains In The F&O Ban List On Monthly Expiry

Recent trading sessions have revealed huge volatility in the Indian markets. Prior to the previous week, indexes had significant upward momentum, and there were few indications of a downward trend; however, markets are currently seeing a sharp decline. Due to the current market status, futures and options pricing has also recently seen a lot of volatility. Futures and Options are one of the most volatile investments in the equity markets, and the pricing fluctuates widely.

As per the National Stock Exchange policy, stocks are removed from the derivatives markets when their prices reach 95% of the Market Wide Position Limit or MWPL. There is only one stock on the Future and Options ban list on 29 September 2022 after the exit of Zee Entertainment Enterprises from the list.

Only one stock Vodafone Idea is on the Future & Options ban list on the day of monthly expiry as the stock has shown huge volatility in the volume and Open Interest and exceeded the 95% MWPL limit. However, Zee Entertainment Enterprises exited the F&O Ban list today as the limit of MWPL fell below 80%.

As per the market-wide position limit set by National Stock Exchange, the stock in the F&O ban list remains on the list until it falls below the 80% mark of MWPL and can not be traded on the derivatives market. Moreover, the traders with existing positions on the contract can unwind their position on the equity.