Under the futures and options (F&O) segment, five stocks were banned from trade on Friday, 14 June by the National Stock Exchange (NSE). The securities banned for the F&O trade are GMR Airports Infra Ltd, Hindustan Copper, The India Cements Ltd, Steel Authority of India, and Sun TV Network 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. 

GMR Airports, and Steel Authority of India were retained on the list from Thursday as the open interest as a percentage of the MWPL of its F&O contracts stood at 89.5% and 88.5%, respectively. The India Cements derivative contracts’ open interest is 93.1% of its MWPL on 14 June, compared to 98% for Hindustan Copper.

The above securities were retained on the list from Thursday, 13 June. Sun TV Network Ltd was added to the list on Friday as the open interest of their F&O contracts reached 102.9%.

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 Balrampur Chini Mills declined below the 80% limit to 76%. 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.