Under the futures and options (F&O) segment, two stocks were banned from trade on Thursday, February 29, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Indus Towers and Steel Authority Of India (SAIL).

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. 

Indus Towers and SAIL were retained on the list from Wednesday as the open interest as a percentage of the MWPL of their F&O contracts stood at 84.6% and 80.1%, respectively. Both of the above securities were retained on the list from Wednesday, February 28. 

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 the Aditya Birla Fashion Retail, Canara Bank and Zee Entertainment Enterprises Ltd declined below the 80% limit to 73.2%, 68.2% and 76.7%, respectively. Hence, they were exited from the list on Thursday. 

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.