Under the futures and options (F&O) segment, five stocks were banned from trade on Monday, June 26, by the National Stock Exchange (NSE). 

The securities banned for F&O trade are Hindustan Aeronautics (HAL), Punjab National Bank (PNB), L&T Finance Holdings (L&TFH), RBL Bank, and Hindustan Copper. 

Derivative contracts of these stocks were banned as they have 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. 

The MWPL of HAL stood at 97.3% on Friday, while that of PNB was 83.7%. F&O Contracts of Hindustan Copper saw their MWPL at 83.9%; for L&TFH, the same stood at 81.8 %. RBL was the latest to enter the ban, as the MWPL of its F&O touched 95.8% on Friday.

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.