Under the futures and options (F&O) segment, eight stocks were banned from trade on Friday, 12 April by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Exide Industries, Hindustan Copper, Vodafone Idea, The India Cements Ltd, National Aluminium Company, 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. 

Exide Industries, Steel Authority of India, and Zee Entertainment were retained on the list from Wednesday as the open interest as a percentage of the MWPL of their F&O contracts stood at 94.7%, 80.8%, and 93.7%, respectively. Hindustan Copper’s derivative contracts’ open interest is 104.4% of its MWPL on 12 April, compared to 91.8% for Vodafone Idea, and 89.3% for The India Cement. 

The above securities were retained on the list from Wednesday, 10 April. Balrampur Chini Mills and National Aluminium were added to the list on Friday as the open interest of their F&O contracts reached 104.9% and 105.9%, 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 Bandhan Bank, declined below 80% limit to 78.8%. Hence, it was exited from the list on Friday..

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.