Indian equity markets witnessed moderate declines during Monday’s trading session ahead of the weekly derivatives expiry. The Nifty 50 index declined 58 points or 0.23% to close at 25,227.35, reflecting cautious investor sentiment.
The BSE Sensex mirrored this downward movement, dropping 173.77 points or 0.21% to settle at 82,327.05. The subdued trading occurred amid continued derivatives restrictions on two stocks with elevated open interest positions.
Sammaan Capital Limited maintained its position on the F&O ban list with current MWPL at 141.90%, showing a slight reduction from 143.87% previously. RBL Bank Limited continued in the ban category with MWPL decreasing to 117.75% from 120.73% in the last session.
Both stocks remained under trading restrictions due to persistently high open interest levels exceeding regulatory thresholds. The marginal reduction in MWPL percentages indicated limited position unwinding by market participants.
A stock enters the F&O ban when open interest in its derivative contracts exceeds 95% of the Market-Wide Position Limit. This regulatory measure aims to control excessive speculation and maintain orderly market conditions during volatile periods.
During the ban period, traders are prohibited from initiating new F&O positions and can only reduce existing exposures. Violations of these restrictions attract financial penalties and disciplinary action from the exchange authorities.
The Nifty weekly derivatives contracts are scheduled to expire on Tuesday, October 14, 2025, following the standard weekly cycle. All contracts will be settled based on the official closing price of the underlying index on expiry day.
For user convenience, trading platforms may group weekly contracts under monthly tabs during expiry week. This technical categorisation does not affect the actual settlement terms or contractual obligations.
The trading session occurred during the typically volatile expiry week, characterised by cautious position adjustments and rollover activity. The F&O ban mechanism assumes heightened importance during such periods to prevent disruptive price movements in specific stocks.
Market participants exercised restraint while navigating the restrictions on banned counters. The overall sentiment turned cautious amid expiry-related volatility and global market uncertainties.
The F&O ban list serves as a crucial risk management tool for maintaining market stability during high-volatility scenarios. It helps prevent excessive leverage buildup in individual stocks that could potentially trigger cascading effects.
Traders must vigilantly monitor open interest levels to anticipate potential entry into ban territory. The system provides a necessary cooling-off period when derivative positions reach concentrations that threaten orderly trading.
Read More: Stocks to Watch on October 14, 2025
Indian equities experienced modest declines ahead of the weekly derivatives expiry, reflecting cautious trader sentiment amid regulatory restrictions. The continued presence of stocks in the F&O ban list underscores persistent speculative interest despite trading limitations.
Market mechanisms functioned effectively in maintaining a balance between participation and risk management during expiry week. Investors remained watchful of broader market direction while respecting specific security constraints in the derivatives segment.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Oct 14, 2025, 9:54 AM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.
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