Under the futures and options (F&O) segment, eleven stocks were banned from trade on Friday, 24 May by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya BIrla Capital, Balrampur Chini Mills, Bandhan Bank, Hindustan Copper, Indian Energy Exchange, The India Cements, Metropolis Healthcare, National Aluminium, Piramal Enterprises, Punjab National Bank, 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. 

Hindustan Copper, Metropolis Healthcare, and Aditya Birla Capital were retained on the list from Thursday as the open interest as a percentage of the MWPL of its F&O contracts stood at 124.2%, 84.9%, and 80.5%, respectively. Balrampur Chini Mills derivative contracts’ open interest is 81.3% of its MWPL on 24 May, compared to 88.1% for Punjab National Bank, and 83.6% for Bandhan Bank. 

Piramal Enterprise, National Aluminium, and Zee Entertainment were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 88.6%, 83%, and 81%, respectively. Furthermore, Indian Energy and The India Cement were also retained on the list as their open interest is 82.1% and 85.9%, 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 Biocon, Vodafone Idea, declined below the 80% limit to 79.8% and 78.8%, respectively. Hence, it was removed from the list on Wednesday. 

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.