Why is MIS not allowed on certain scrips?

MIS (Margin Intraday Square-off) is a popular trading strategy that involves placing an intraday trade with the intention of squaring off the position before the end of the trading day. This strategy is typically used in highly liquid securities with predictable price movements. However, not all scrips (or securities) are eligible for MIS trading. Some reasons why MIS may be restricted on certain scrips include:

Low liquidity: Scrips with low liquidity may not have enough buyers and sellers to allow for easy buying and selling of large quantities of shares.

Our Risk Management System (RMS) staff rejects MIS orders for specific scrips because of:

1. If there is little liquidity or if the price band in which it trades is lower.
2. We don't permit MIS on a scrip that isn't traded as a contract (Futures & Options) if it consistently trades in a high volatile range until the volatility decreases, in accordance with our internal requirements.
3. Larger VAR margin scrips.
4. Scrip that falls within the Trade-to-Trade category.
5. Scrip that is classified as ASM or GSM.
6. Scrips that are listed as Unsolicited SMS by the exchange