Under the futures and options (F&O) segment, one stock was banned from trade on Thursday, January 25, by the National Stock Exchange (NSE). The security banned for the F&O trade is Zee Entertainment Enterprises Ltd (ZEEL).

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 Enterprises Ltd was added to the list on Thursday as the open interest of its F&O contracts reached 100.4%. 

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 open interest for the F&O contracts of Balrampur Chini Mills, Indian Railway Catering and Tourism Corporation (IRCTC), National Aluminium Co, Oracle Financial Services Software and RBL Bank declined below the 80% limit. Hence, they were exited from the list on Thursday. 

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.