Under the futures and options (F&O) segment, nine stocks were banned from trade on Tuesday, 14 May by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Canara Bank, GMR Airports, Hindustan Copper, Vodafone Idea, Piramal Enterprises, Punjab National Bank, Steel Authority of India, 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 and Canara Bank were retained on the list from Monday as the open interest as a percentage of the MWPL of their F&O contracts stood at 88.7% and 84.8%, respectively. Balrampur Chini Mills derivative contracts’ open interest was 90.3% of their MWPL on 14 May, compared to 87.1% for GMR Airports and 87.4% for the Steel Authority of India. 

Punjab National Bank, Hindustan Copper, and Zee Entertainment were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 81.5%, 92%, and 94.9%, respectively.

The above securities were retained on the list from Monday, 13 May. Piramal Enterprises was added to the list on Tuesday as the open interest of its F&O contracts reached 101.4%.

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.