Under the futures and options (F&O) segment, Thirteen stocks were banned from trade on Thursday, 23 May by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya BIrla Capital, Balrampur Chini Mills, Bandhan Bank, Biocon, Hindustan Copper, Vodafone Idea, Indian Energy Exchange, The India Cements, Metropolis Healthcare, National Aluminium, Piramal Enterprises, Punjab National Bank, and Zee Entertainment Enterprise. 

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. 

Vodafone Idea, Biocon, and Aditya Birla Capital were retained on the list from Wednesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 82.2%, 82.1%, and 85.4%, respectively. Balrampur Chini Mills derivative contracts’ open interest is 82.9% of its MWPL on 23 May, compared to 91.7% for Punjab National Bank and 89.3% for Bandhan Bank. 

Piramal Enterprise, National Aluminium, and Zee Entertainment were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 89.8%, 87%, and 82.3%, respectively. Furthermore, Indian Energy and India Cement were also retained on the list as their open interest is 88.1% and 88.2%, respectively. 

The above securities were retained on the list from Wednesday, 22 May. Hindustan Copper and Metropolis Healthcare were added to the list on Thursday as the open interest of their F&O contracts reached 135.8% and 104%, 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 open interest for F&O contracts of GMR Airports, Granules India, declined below the 80% limit to 78% and 73.5%, respectively. 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.