Under the futures and options (F&O) segment, two stocks were banned from trade on Thursday, February 1, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Steel Authority of India Ltd (SAIL) and 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. 

The open interest for ZEEL’s derivative contracts stood at 92.9% of its MWPL at Wednesday’s closing time; hence, it was retained on the list from January 31. SAIL was added to the list on Thursday as the open interest of its F&O contracts reached 102.1%. 

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.