Under the futures and options (F&O) segment, five stocks were banned from trade on Wednesday, 29 May, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya Birla Fashion and Retail, Biocon, Hindustan Copper, Vodafone Idea, and Piramal Enterprises.

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 and Biocon were retained on the list from Tuesday as the open interest as a percentage of the MWPL of their F&O contracts stood at 97.4% and 89.4%, respectively. Vodafone Idea derivative contracts’ open interest was 95.3% of their MWPL on 29 May, compared to 82% for Piramal Enterprises.

The above securities were retained on the list from Tuesday, 28 May. Aditya Birla Fashion and Retail was added to the list on Wednesday as the open interest of its F&O contracts reached 105.3%. 

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 open interest for F&O contracts of Gujarat Narmada Valley Fertilisers & Chemicals declined below the 80% limit to 77.5%. Hence, it was removed from the list on Wednesday. 

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.