Under the futures and options (F&O) segment, five stocks were banned from trade on Tuesday, 22 April, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Angel One Ltd, Hindustan Copper, Manappuram Finance, Indian Renewable Energy, and Tata Elxsi. 

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.

Indian Renewable Energy, Angel One, Manappuram Finance, and Hindustan Copper were retained on the list from Monday as the open interest as a percentage of the MWPL of its F&O contracts stood at 82.3%, 80.1%, 91.6%, and 85.7%, respectively. 

The above securities were retained on the list from Monday, 21 April. Tata Elxsi was added to the list on Tuesday as the open interest of their F&O contracts reached 99.5%..

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 National Aluminium declined below the 80% limit. Hence, it was removed from the list on Tuesday.

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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