Under the futures and options (F&O) segment, five stocks were banned from trade on Thursday, 13 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, and Steel Authority of India. 

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, GMR Airports, and Steel Authority of India were retained on the list from Wednesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 82.5%, 94.2% and 91%, respectively. The India Cements derivative contracts’ open interest is 94.7% of its MWPL on 13 June, compared to 100.6% for Hindustan Copper.

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 F&O contracts of Zee Entertainment declined below the 80% limit to 79.7%. Hence, it was removed 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.