How Do the New Delta-Based F&O Ban Rules for Single-Stock Derivatives Affect My Trading on FYERS?
When a stock goes into the F&O ban, the Exchange controls how much risk traders can take in that stock. From October 2025, the Exchange checks risk using a delta-based method called Future-Equivalent Open Interest (FutEq OI). In simple terms, it looks at your total position’s delta to see if you are reducing or adding risk. During the ban, only risk-reducing orders are allowed. You cannot build new positions.
Important: If you try to exit just one leg of a hedge and that adds to your net delta, the platform will block it. To close both legs together in a risk-reducing way, please contact us. What Changed
- Old way: Limits were watched with simple lot counts of Open Interest (OI).
- New way: Limits are watched with delta-adjusted OI, called FutEq OI. Your futures and options are combined into one risk number based on delta. See the SEBI framework (May 29, 2025) and the Exchange SOP (effective Oct 1, 2025) for details.
What You Can and Cannot Do During Ban
- Allowed: Close or reduce your overall delta. Example: reduce long delta by selling part of a long future, or add an option that lowers your net delta.
- Not allowed: Any trade that adds to your net delta or flips your side (for example, moving from net short to net long).
- Rollover: Not allowed if it increases your net delta.
How the Delta Check Works
- Day 1 of ban: The Exchange notes your base position in that stock at day end.
- Each next day: Your end-of-day position is compared with the base using the 2:00 PM option deltas that the Clearing Corporation publishes. This separates natural delta moves from trading actions.
- No issue if your end-of-day FutEq OI is the same or lower than your base and the sign does not change.
- Violation if your end-of-day FutEq OI is higher than the base, or if your net side flips from long to short or short to long.
A stock enters ban if combined market-wide FutEq OI crosses 95% of the Market-Wide Position Limit (MWPL). Normal trading resumes after it falls to 80% or lower. The Exchange recalculates MWPL each quarter using free-float and delivery data.
Penalties During Ban
- If you add to your net delta beyond the base, a penalty of 1% of the violation value applies, with a minimum ₹5,000 and a maximum ₹1,00,000 per stock per day, plus GST.
- The penalty repeats each day until you reduce your net delta to base or lower, or the stock exits ban.
Tips
- Before placing an order in a banned stock, ask: “Will this lower my net delta?” If not, the Exchange will not allow it.
- To safely exit hedges, place a combined close-out that clearly reduces risk. If you are unsure, contact us and we will help.
Note: The Exchange uses delta files at 2:00 PM to judge passive changes. If your delta rises only due to price movement and you did not trade, this is not a violation. Violations come from trades that raise your net delta compared to your base.
Examples
- Hedge reduce: You are long 1 future (about +1 delta). You buy a near ATM put (about −0.4 delta). Net goes to +0.6. This lowers risk. Allowed.
- Hedge exit adds risk: You were +0.5 net on Day 1 using a long future and a long put. You exit the put and remain with +1. Net delta rises. Not allowed.
- Market move only: You do nothing, but your call delta goes from +0.30 to +0.50 due to price. No violation because you did not add positions.
What If...
| Scenario | What to do |
|---|
| I tried to exit one leg of my hedge and it was blocked | Exiting one leg can raise net delta. Please contact us. We will help place a combined close-out that reduces risk. |
| I want to roll my position | Rollover is not allowed if it raises your net delta. Only risk-reducing actions are allowed during the ban. |
| How do I avoid penalties | Make sure your end-of-day net delta is the same as or lower than your Day-1 base. Do not flip sides. |
| When does a stock enter or exit ban | It enters ban when market-wide FutEq OI crosses 95% of MWPL. It exits when it falls to 80% or lower. |
| I need help closing both legs today | Please contact us. We will assist with compliant close-out orders that reduce risk, as allowed by the Exchange. |
Last updated: 09 Dec 2025
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