The F&O market usually has a lot of speculation done by traders. However, there are times when the speculative activity increases beyond a certain threshold. This is when the stock exchange bans the script for futures and options trading.
The threshold is as follows:
MWPL is calculated as the lower of 20% of the number of shares held by non-promoters and 30 times the average number of shares traded daily in the cash segment in the preceding month.
Open Interest is calculated as a percentage of the MWLP
If it exceeds 95% of the MWLP, then the stock is banned for futures and options trading