Today, the National Stock Exchange (NSE) has placed two stocks under ban in the trading and futures and options (F&O) space. According to the NSE, the securities were banned in the F&O section as they exceeded 95% of the overall market position limit (MWPL).

Indiabulls Housing Finance and Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) are the stocks that continue to be a part of the F&O ban list on January 12, 2023. 

The derivative contracts have crossed 95% of the market-wide position limit and were recently put in the ban period by the stock exchange.

Every day, the NSE list updates the list of securities in the F&O ban. Stock exchanges set the MWPL (Market Wide Position Limit), the maximum number of contracts (open interest) that can be opened at any time. Therefore, if open interest exceeds 95% of MWPL, the F&O contract for that stock will enter a ban period.