Under the futures and options (F&O) segment, three stocks were banned from trade on Thursday, 25 April, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya Birla Fashion and Retail, Hindustan Copper, and Steel Authority of India.

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 was retained on the list from Wednesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 82.8%. 

The above securities were retained on the list from Wednesday, 24 April. Aditya Birla Fashion and Steel Authority of India were added to the list on Thursday as the open interest of their F&O contracts reached 96.1% and 100.7%, 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 Vodafone Idea and Zee Entertainment Enterprise Ltd declined below the 80% limit to 79.5% and 77.9%, respectively. Hence, it was exited from the list on Thursday.

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.