Under the futures and options (F&O) segment, nine stocks were banned from trade on Friday, 10 May, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya Birla Fashion and Retail, Balrampur Chini Mills, Canara Bank, GMR Airports, Vodafone Idea, Piramal Enterprises, Punjab National Bank, Steel Authority of India, and Zee Entertainment Enterprise. 

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. 

Vodafone Idea, Canara Bank, and Aditya Birla Fashion were retained on the list from Thursday as the open interest as a percentage of the MWPL of its F&O contracts stood at 89.4%, 91.1%, and 81.5%, respectively. Balrampur Chini Mills derivative contracts’ open interest is 93.2% of its MWPL on 10 May, compared to 89.2% for GMR Airports, and 89.7% for Steel Authority of India. 

Punjab National Bank, Piramal Enterprises, and Zee Entertainment were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 85.8%, 80.9%, and 96.2%, 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 Biocon declined below the 80% limit to 78.5%, respectively. Hence, it was removed 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.