Under the futures and options (F&O) segment, six stocks were banned from trade on Wednesday, January 3, by the National Stock Exchange (NSE). The security banned for the F&O trade are Balrampur Chini Mills, Delta Corp, Hindustan Copper, Indian Energy Exchange (IEX), Steel Authority of India Ltd (SAIL) and Zee Entertainment Enterprises Ltd (ZEEL). 

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. 

Balrampur Chini and Hindustan Copper were retained on the list on January 3 as the open interest as a percentage of the MWPL of their F&O contracts stood at 108.8% and 89.7%, respectively.

Delta Corp, IEX, SAIL and ZEEL were added to the list on Wednesday as the open interest of their F&O contracts reached 116.9%, 97.8%, 102% and 96%, 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 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.