The National Stock Exchange (NSE) has banned the trading of futures and options (F&O) up to four stocks/securities on Wednesday, September 29, 2021. According to the NSE, these stocks are prohibited in the F&O sector because they have exceeded 95 percent of the market-wide position limit (MWPL).

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The four stocks under NSE’s F&O ban list are Vodafone Idea, Zee Entertainment Enterprises (ZEEL), Sun TV, and Steel Authority of India (SAIL). Indian Railway Catering and Tourism Corporation (IRCTC), which was under the list from the past few sessions is out of the ban for today. Punjab National Bank (PNB), Indiabulls Housing Finance, Escorts, Canara Bank are also not part of the banned list for Wednesday.

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The derivative contracts in the aforementioned securities have exceeded 95 percent of the market-wide position limit and have thus been placed in a ban period by the stock exchange. 

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“It is hereby informed that all clients/members shall trade in the derivative contracts of said security only to decrease their positions through offsetting positions,” the stock exchange said. “Any increase in open positions shall attract appropriate penal and disciplinary action,” NSE added.

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During the F&O ban period, no new positions are permitted for any of the F&O contracts in that stock. The stock exchanges set the MWPL (market-wide position limit), which is the maximum number of contracts that can be open at any moment (Open Interest) thus, the F&O contracts of that stock enter a ban period if the open interest exceeds 95 percent of the MWPL.