Under the futures and options (F&O) segment, twelve stocks were banned from trade on Tuesday, 19 March, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya Birla Fashion, Balrampur Chini Mills Ltd, BHEL, Biocon, Hindustan Copper, Manappuram Finance Ltd, National Aluminium, Piramal Enterprises, RBL Bank Limited, Steel Authority of India (SAIL), Tata Chemicals, and Zee Entertainment Enterprise 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.

Zee Entertainment and Manappuram Finance were retained on the list from Monday as the open interest as a percentage of the MWPL of their F&O contracts stood at 83.9% and 80.1%. National Aluminium’s derivative contracts’ open interest is 81.5% of its MWPL on 19 March, compared to 83.7% for the Steel Authority of India, 88% for Piramal Enterprises, and 81.1% for Tata Chemicals.

Furthermore, Aditya Birla Fashion, BHEL, and RBL Bank were also retained on the list as their open interest is 80.2%, 85%, and 87.3%, respectively. Hindustan Copper and Biocon Ltd were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 91.1% and 97.3%, respectively.

The above securities were retained on the list from Monday, 18 March. Balrampur Chini Mills Ltd was added to the list on Tuesday as the open interest of their F&O contracts reached 110.8%.

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.