A total of three stocks are banned from trading in the futures and options segment by the National Stock Exchange on March 29 after these securities crossed 95 percent of the market-wide position limit.
The exchange has added one fresh stock to the list and removed three for Tuesday.
Derivative contracts in these six securities crossed 95 percent of the market-wide position limit and hence they are on the ban list, the NSE said.
"All clients/members shall trade in the derivative contracts of said security only to decrease their positions through offsetting positions. Any increase in open positions shall attract appropriate penal and disciplinary action,” the NSE said.
During the ban, traders are not allowed to take fresh positions in those stocks but can start reducing their positions. The F&O ban rule helps reduce speculation in a stock.
The market-wide position limit, which is set by the stock exchanges, is the maximum number of outstanding open positions (buy and sell) in the F&O contracts of a security. If the open interest in a stock crosses 95 percent of the market wide position limit, then its F&O contracts enter the ban period.