Under the futures and options (F&O) segment, Seven stocks were banned from trade on Monday, 12 March by the National Stock Exchange (NSE). The securities banned for the F&O trade are Manappuram Finance Ltd, Zee Entertainment Enterprise Ltd (ZEEL), Hindustan Copper, Steel Authority of India (SAIL), Aditya Birla Fashion, Manappuram Finance Ltd, Tata Chemicals, and Mahanagar Gas Ltd.

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 87.7% and 93.1%. Mahanagar Gas’s derivative contracts’ open interest is 88.3% of its MWPL on 12 March, compared to 108.9% for the Steel Authority of India and 100.7% for Tata Chemicals.

The above securities were retained on the list from Thursday, 7 March. Aditya Birla Fashion and Hindustan Copper were added to the list on Tuesday as the open interest of its F&O contracts reached 99.8% and 97.1%, 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.