Under the futures and options (F&O) segment, Thirteen stocks were banned from trade on Tuesday, 21 May by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya BIrla Capital, Balrampur Chini Mills, Bandhan Bank, Biocon, Birlasoft Limited, GMR Airports, Granules India, Hindustan Copper, Vodafone Idea, The India Cement, Piramal Enterprises, 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, Biocon, and Birlasoft were retained on the list from Friday as the open interest as a percentage of the MWPL of its F&O contracts stood at 84.6%, 87.2%, and 81.9%, respectively. Balrampur Chini Mills derivative contracts’ open interest is 85.9% of its MWPL on 21 May, compared to 82.2% for GMR Airports and 80.2% for the Steel Authority of India. 

Piramal Enterprise, Hindustan Copper, and Zee Entertainment were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 92.4%, 80.5%, and 90.5%, respectively. Furthermore, Granules India, Bandhan Bank, and The India Cement were also retained on the list as their open interest is 86.7%, 97%, and 92.3%, respectively. 

The above securities were retained on the list from Friday, 17 May. Aditya Birla Capital was added to the list on Tuesday as the open interest of its F&O contracts reached 96.1%.

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.