The National Stock Exchange (NSE) has banned the trading of futures and options (F&O) on up to nine stocks/securities on Thursday, September 16, 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 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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The ban continues to apply to Indian Railway Catering and Tourism Corporation (IRCTC), Vodafone Idea (Vi), Canara Bank, Exide Industries, LIC Housing Finance, Escorts, Sun TV, and National Aluminium Company (Nalco), while Zee Entertainment Enterprises was added to the list of stocks under F&O ban today. Shares of Zee Entertainment Enterprises Limited have soared in the last two trading sessions after Rakesh Jhunjhunwala’s Rare Enterprises and BofA Securities Europe SA purchased them on the open market.

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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.