Under the futures and options (F&O) segment, one stock was banned from trade on Friday, November 3, by the National Stock Exchange (NSE). The security banned for the F&O trade is Gujarat Narmada Valley Fertilizers & Chemicals (GNFC).  

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. 

The open interest for the derivative contracts of GNFC stood at 100.3% of its MWPL at the closing time on Thursday. It was, hence, retained on the ban list for Friday, November 3. 

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.