What is the meaning of New position for given scrip are not allowed for member ??
Answers
Answer:
A security is under a ban period for F&O trading if its derivative contracts cross 95% of Market Wide Position Limits (MWPL).
Explanation:
This means that the combined open interest of all F&O contracts for all the months taken together for that particular underlying crosses 95% of MWPL.
Open interest is the number of contracts outstanding in futures and options trading on an official exchange at any one time.
A user isn't allowed to open any new positions in securities under a ban period. But he/she can exit already opened positions.
PRISM (Parallel Risk Management System) is the real-time position monitoring and risk management system for the Futures and Options market segment at NSE accounts . The risk of each trading and clearing member is monitored on a real-time basis and alerts/disablement messages are generated if the member crosses the set limits.
Clearing members, who have violated any requirement and / or limits, may reduce the position by closing out its existing position or, bring in additional cash deposit by way of cash or bank guarantee or FDR or securities. Similarly, in case of margin violation by Trading members, clearing member has to set its limit for enablement.
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