What causes F&O contracts to enter the ban period?

In the context of the Indian stock market, the “ban period” refers to the scenario where certain F&O (Futures and Options) contracts are temporarily prohibited from initiating new positions. when the open interest of any stock crosses 95% of the Market Wide Positions Limits(MWPL). The ban is reversed only if the open interest falls below 80%. 

This restriction is imposed by stock exchanges to manage excessive volatility, ensure market integrity, and safeguard the interests of investors. The ban period is often known as the “F&O Ban” or “F&O Freeze.”

The list of stocks under the ban period is displayed on our website.

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