Under the futures and options (F&O) segment, four stocks were banned from trade on Friday, February 2, by the National Stock Exchange (NSE). The securities banned for the F&O trade are India Cements, Indus Towers, Steel Authority of India Ltd (SAIL) and Zee Entertainment Enterprises Ltd (ZEEL).

Derivative contracts of these stocks were banned as the open market interest for these securities has crossed 95% of the market-wide position limit (MWPL) set by the exchanges. The MWPL is the maximum number of contracts that can be opened at any particular time. 

SAIL and ZEEL were retained on the list from Thursday as the open interest as a percentage of the MWPL of their F&O contracts stood at 97.8% and 91.1%, respectively. Indus Towers and India Cements were added to the list on Friday as the open interest of its F&O contracts reached 131.5% and 122.1%, respectively. 

The ban will be lifted once the position falls below 80%. Traders will get penalised for buying or selling these securities. They will be available for trading in the cash market. 

The National Stock Exchange updates the list of securities on the F&O ban list daily. This list serves as a guide for traders and investors in the market. Traders who trade in indices do not encounter a situation of security ban.