What can I do if I already have a position in a banned stock?

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Market Wide Position Limit (MWPL)

What can I do if I already have a position in a banned stock?

No fresh positions are allowed to be created once the stock comes in ban period, as per our internal risk policies. However, Rollover of Futures Positions will now be allowed.
You will be allowed to square off your existing positions in the stock in Ban Period. However, if one leg of the hedge position is squared off, it will lead to increase in FutEq OI.
If the square off trade (by client / system) results in increase in FutEq OI during the day, then your pending square off orders in that stock will be cancelled and positions will be squared off any time after 2 PM to reduce the FutEq OI.

Let’s understand with an example:

- Calculation of FutEq Open positions:

nineCol

Instrument

Symbol

Expiry

Strike Price

Option Type

Base Position Qty*
(A)

Contract Delta
(B)

FutEq Base position
(C)= (A)*(B)

Total FutEq Base Positions
(D) = Sum (C)

FUTSTK

ACC

19-May-25

-10

-5.20

OPTSTK

ACC

19-May-25

22400

-10

0.52

-5.20

FUTSTK

ACC

29-May-25

-5.20

*Positions that are open at the end of the day (on the day the security was added to the ban list) will be considered base positions. These base positions will be compared with the next day’s positions by computing FutEq of Open positions at 2 PM as per the Exchange guidelines.

-Examples of increase/ decrease in FutEq open positions and system actions:

fourCol

Scenario

FutEq Base Positions (T day)

FutEq open positions available on T+1 day at 2 PM

Remarks

Scenario 1 - No Change in positions

12.50

No Action

Scenario 2 - Client has squared off the positions, which resulted in increase in FutEq open position and the sign has changed

10.50

-15.2

System will square off the positions

Scenario 3 - Client has squared off the positions, which resulted in decrease in FutEq open position

5.20

4.80

No Action

Scenario 4 - Client has squared off the positions, which resulted in increase in FutEq open positionScenario 4 - Client has squared off the positions, which resulted in increase in FutEq open position

10.50

15.2

System will square off the positions

All the figures mentioned above are fictional and intended for the purpose of illustration.

The above mechanism is applicable for Single Stock only. Any breach observed by Clearing Corporations during monitoring of positions during ban period may attract penalty which may be recovered from clients.

NOTE: You can exit (square off) your position. But you cannot increase, reverse, or hedge it using new F&O trades.