Under the futures and options (F&O) segment, three stocks were banned from trade on Tuesday, 9 April, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Bandhan Bank Ltd, Steel Authority of India, and Zee Entertainment Enterprise Ltd.

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.

Bandhan Bank, Steel Authority of India, and Zee Entertainment were retained on the list from Monday as the open interest as a percentage of the MWPL of their F&O contracts stood at 84.3%, 93.1%, and 95.5%, 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 open interest for F&O contracts of Hindustan Copper declined below the 80% limit to 76%. Hence, it was exited from the list on Tuesday.

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.