Under the futures and options (F&O) segment, nine stocks were banned from trade on Monday, 27 May by the National Stock Exchange (NSE). The securities banned for the F&O trade are Bandhan Bank, Biocon, Gujarat Narmada Valley Fertilisers & Chemicals, Hindustan Copper, Vodafone Idea, The India Cements, National Aluminium, Piramal Enterprises, and Punjab National Bank. 

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, Bandhan Bank, and India Cements were retained on the list from Friday as the open interest as a percentage of the MWPL of its F&O contracts stood at 118.5%, 82.1%, and 82.8%, respectively. National Aluminium derivative contracts’ open interest is 80.7% of its MWPL on 27 May, compared to 87.5% for Piramal Enterprises, and 84.3% for Punjab National Bank. 

The above securities were retained on the list from Friday, 24 May. Biocon, Gujarat Narmada Valley, and Vodafone Idea were added to the list on Monday as the open interest of their F&O contracts reached 113.4%, 95.5%, and 102.9%, 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 Aditya Birla Capital, Balrampur Chini Mills, Indian Energy Exchange, Metropolis Healthcare, and Zee Entertainment Enterprise declined below the 80% limit to 75.4%, 78.2%, 77.8%, 76.1%, and 77.7%, respectively. Hence, it was removed from the list on Monday. 

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.