Under the futures and options (F&O) segment, nine stocks were banned from trade on Wednesday, 14 March, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya Birla Fashion, 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 Tuesday as the open interest as a percentage of the MWPL of their F&O contracts stood at 85.2% and 85.7%. National Aluminium’s derivative contracts’ open interest is 89.9% of its MWPL on 14 March, compared to 90.7% for Steel Authority of India, 93.7% for Piramal Enterprises, and 85.2% for Tata Chemicals. Furthermore, Aditya Birla Fashion and Hindustan Copper were also retained on the list as their open interest is 86.6% and 81.7%, respectively.

The above securities were retained on the list from Wednesday, 13 March. RBL Bank was added to the list on Wednesday as the open interest of its F&O contracts reached 96.6%.

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 Mahanagar Gas declined below 80% limit to 76.8%. Hence, it was exited 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.