Name of Securities :
Date : 01-10-2020
- 1. VEDL
A stock comes into BAN period in F&O (Futures & Options) once its derivative contracts crosses 95% of the market-wide position limit (MWPL). In other words, when the combined open interest in all the options and futures contracts for all the months taken together crosses 95% MWPL, stock enters the Ban period in F&O.
Moreover once the stock enters the BAN period, trading in the derivative contracts is allowed only to decrease positions through off-setting positions till normal trading in the script is resumed. No new/fresh contracts are permitted but intra-day trades are allowed as they do not alter the open interest. Any increase in open positions attracts penalty of 5,000 INR per contract.
The stock goes out of the ban period i.e. normal trading in F&O contracts of the stock continues only after the aggregate open interest across the exchanges comes down to 80% or below the market wide position limit (MWPL).
