Under the futures and options (F&O) segment, ten stocks were banned from trade on Thursday, 9 May by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya Birla Fashion and Retail, Balrampur Chini Mills, Biocon, Canara Bank, GMR Airports, Vodafone Idea, Piramal Enterprises, Punjab National Bank, Steel Authority of India, and Zee Entertainment Enterprise. 

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. 

Vodafone Idea, Aditya Birla Fashion, and Biocon were retained on the list from Wednesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 91.1%, 82.8%, and 80.2%, respectively. Balrampur Chini Mills derivative contracts’ open interest is 96.4% of its MWPL on 9 May, compared to 91.3% for GMR Airports and 91.7% for Steel Authority of India. 

Punjab National Bank and Zee Entertainment were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 91% and 98.2%, respectively.

The above securities were retained on the list from Tuesday, 7 May. Canara Bank and Piramal Enterprises were added to the list on Thursday as the open interest of their F&O contracts reached 101.8% and 99.1%, 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.