The benchmark indices of the Indian market are looking flat for the second consecutive day, and today markets haven't shown that much volatility. The Futures & Options Ban list was increasing rapidly for the past few days of the volatile market; however, the list has shrunk to 2 stocks today.
As per the rules of the National Stock Exchange, the stock that exceeds the 95% market Market Wide Position Limit (MWPL) gets added to the Futures & Options Ban list. The equity remains on the ban list until the stock position drops below the 80% mark of MWPL.
Here is the updated F&O Ban list on 28 September 2022:
• Vodafone Idea: This telecom company has seen huge volatility from sharp selling pressure to strong upside momentum, which is why the stock exceeded 95% of the MWPL limit.
• Zee Entertainment Enterprises: The stock has been on the Futures & Options ban list for a long while, and the MWPL is not dropping below 80%.
In today's trading session Punjab National Bank which was consistently part of the list, has exited the F&O Ban list as it has dropped below the 80% MWPL limit.
The stock exchanges set the Market Wide Position Limit, and according to the exchange rules, the stock present in the Futures & Options ban list can not be traded on the derivatives market. The traders or investors with existing positions in the following equity can easily unwind their positions at any time.