Why are some stock futures under ban? Secondly, if i am long/short in such a scrip, what will happen incase i want to exit it?

General
2

Hi Karuna kumari,

Any scrip trading in F&O segment will have a limit set. So the scrip will be banned only when open interest has reached 95% of the Market wide position limit on any trading day. 

Once the open position goes below 80% of the mentioned number trading will resume (new positions can be taken), till then only position holders can trade (square off the positions).

You can find the details in the link below.

http://www.nseindia.com/products/content/derivatives/equities/sec_ban.htm

2 Likes
3

Like praveen said, you can exit the positions you hold, but you won’t be allowed to enter fresh position on contracts which are in ban period. You can see the list of contracts in ban period here: https://zerodha.com/margin-calculator/Futures/

4

Not necessarily 95 % for some stocks it might be 90 %