Under the futures and options (F&O) segment, five stocks were banned from trade on Monday, 11 March by the National Stock Exchange (NSE). The securities banned for the F&O trade are Manappuram Finance Ltd, Zee Entertainment Enterprise Ltd (ZEEL), Steel Authority of India (SAIL), Manappuram Finance Ltd, Tata Chemicals, and Mahanagar Gas Ltd.

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.

Zee Entertainment and Manappuram FInance were retained on the list from Thursday as the open interest as a percentage of the MWPL of their F&O contracts stood at 88.5% and 97.6%. Mahanagar Gas’s derivative contracts’ open interest is 96.2% of its MWPL on 7 March.

The above securities were retained on the list from Thursday, 7 March. Steel Authority of India and Tata Chemicals were added to the list on Monday as the open interest of its F&O contracts reached 117.7% and 139.5%, 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 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.