Which stocks are likely to remain banned from the futures and options (F&O) market? Which actions will be able to exit while which will enter the list? Ashish Chaturvedi, research analyst at Zee Business, brings this research.

The NSE ban list says Escorts Limited, Indiabulls Housing Finance Limited, Vodafone Idea and Steel Authority of India Limited (SAIL) remain in the ban.

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Currently, four companies are banned, namely Escorts Limited, Indiabulls Housing Finance Limited, Vodafone Idea and Steel Authority of India Limited (SAIL).

Chaturvedi said these four companies will likely remain on the ban list for the time being. This is because the positions were not reduced in these stocks.

The F&O ban applies to all stocks that are traded in this segment. Exchanges set market-wide position limits (MWPL) for stocks in this segment. MWPL is the maximum number of contracts that can be opened at any time (Open Interest). If the open interest in a stock exceeds 95% of the MWPL of all futures and options contracts in that stock, all F&O contracts in that stock enter a blackout period.

According to this report, the MWPL for escorts is 95%; for IB Housing it is 91%, Vodafone Idea 89% and SAIL 84%. This was the status during market hours.

One stock that could now see an entry in this list is Granules India Limited whose MWPL crossed the threshold today, he said. It was around 114% at that time.

Watch the Zee Business Tweet video below:

F&O बैन से बेनिफिट…
कौनसे स्टॉक्स F&O बैन में बने रहेंगे?
कौनसे स्टॉक्स ‘EXIT’ले पाएंगे?
??

M&Os and M&Os @AshishZBiz | @AnilSinghvi_ pic.twitter.com/sD2H8emTVg

— Zee Business (@ZeeBusiness) January 17, 2022

This stock saw a major correction today and settled at Rs 330.95 on the NSE, down Rs 26 or more than 7% from the last closing price on Friday.