This sugar stock is under an F&o ban on Nse today

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A single stock was banned from trading on Wednesday, March 16, 2022 in the Futures and Options (F&O) segment by the National Stock Exchange (NSE). The counter was banned in the F&O segment as it crossed 95% of the market-wide position limit (MWPL), according to the NSE.

Sugar stock Balrampur Chini, which was part of the ban in the previous session, continues to be the only stock under the F&O ban for today by the exchange. The NSE updates the list of prohibited securities on a daily basis. Balrampur Chini Mills Limited is one of the leading sugar manufacturing companies in India.

Derivative contracts on the mentioned securities have breached 95% of the market-wide position limit and are therefore currently blacklisted by the exchange, NSE said.

“It is hereby advised that all clients/members will only trade derivative contracts in these securities to decrease their positions through offsetting positions,” the exchange said. “Any increase in open positions will result in appropriate criminal and disciplinary sanctions,” NSE said. added.

No new positions are allowed for any of the F&O contracts in that particular stock when it is under the F&O blackout period. The MWPL (market-wide position limit) is set by the exchanges which is the maximum number of contracts that can be opened at any time (Open Interest), therefore, F&O contracts for this stock enter a period blackout if the open interest crosses 95% of the MWPL.

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