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Stocks Under F&O Ban: Vodafone Idea, Indian Energy, Punjab National Bank, and Others

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Under the futures and options (F&O) segment, Thirteen stocks were banned from trade on Wednesday, 22 May by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya BIrla Capital, Balrampur Chini Mills, Bandhan Bank, Biocon, GMR Airports, Granules India, Vodafone Idea, Indian Energy, The India Cement, National Aluminium,  Piramal Enterprises, Punjab National Bank, and Zee Entertainment Enterprise. 

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. 

Vodafone Idea, Biocon, and Aditya Birla Capital were retained on the list from Tuesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 83.2%, 84.1%, and 88.8%, respectively. Balrampur Chini Mills derivative contracts’ open interest is 84.3% of its MWPL on 22 May, compared to 80.6% for GMR Airports, and 91.9% for Bandhan Bank. 

Piramal Enterprise and Zee Entertainment were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 90.6% and 85.4%, respectively. Furthermore, Granules India and The India Cement were also retained on the list as their open interest is 83.1% and 90.2%, respectively. 

The above securities were retained on the list from Tuesday, 21 May. Indian Energy, National Aluminium, and Punjab National Bank were added to the list on Wednesday as the open interest of their F&O contracts reached 102.7%, 96.4%, and 95.9%, 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 open interest for F&O contracts of Birlasoft Limited, Hindustan Copper, and Steel Authority of India declined below the 80% limit to 79.3%, 77.4%, and 76.4%, respectively. Hence, it was removed from the list on Wednesday. 

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.

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