Under the futures and options (F&O) segment, six stocks were banned from trade on Tuesday, 7 May by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya Birla Fashion and Retail, Balrampur Chini Mills, GMR Airports, Steel Authority of India, Vodafone Idea, and Biocon. 

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, Adi9tya Birla Fashion, and Biocon were retained on the list from Monday as the open interest as a percentage of the MWPL of its F&O contracts stood at 93.9%, 87.3%, and 85.5%, respectively. Balrampur Chini Mills derivative contracts’ open interest is 103.6% of its MWPL on 7 May, compared to 87.3% for Aditya Birla Fashion. 

The above securities were retained on the list from Monday, 6 May. Steel Authority of India was added to the list on Tuesday as the open interest of its F&O contracts reached 99.6%.

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 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.