Under the futures and options (F&O) segment, six stocks were banned from trade on Wednesday, 12 June by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, GMR Airports Infra Ltd, Hindustan Copper, The India Cements Ltd, Steel Authority of India, and Zee Entertainment Enterprise 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. 

Balrampur Chini Mills and Steel Authority of India were retained on the list from Tuesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 98.9% and 93%, respectively. The India Cements derivative contracts’ open interest is 101.2% of its MWPL on 12 June, compared to 80.9% for Zee Entertainment.

The above securities were retained on the list from Tuesday, 11 June. GMR Airports and Hindustan Copper were added to the list on Wednesday as the open interest of their F&O contracts reached 104.6% and 107.3%, 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.