What are securities under ban period? How can I rollover if the securities I hold are in ban period?

Each security will have a total allowable contracts limit, also known as the market wide position limit. If a stock reaches or crosses 95 percent of this limit, it will go into ban period in the F&O (futures and options.)

This is the security under the ban time.

If a stock is in ban period,

  • No fresh contract is allowed on that security

When the open interest on the security goes down to 80 per cent of the wide position limit by expiry or sale and end of the contract, new contracts are allowed

  • There are penalties on new contracts during the ban period to ensure this.

  • Intra-day Trades are allowed as they will not affect the open interest position


Trading with a Security Under Ban

In this period, the concept of ‘rollover’ can become very important.

A rollover in this time means that the trader will exit the current contract and have an identical contract in the next period. If the current contract is almost at expiry and the security is under ban then the trader cannot enter into any fresh contracts on the security.

However, a rollover ensures that there is no increase in the open interest and thus no penalty is incurred.

For a rollover of this sort, a trader will have to manually apply for a rollover, as automated contracts would be difficult during the ban period.

Otherwise, trading on this security will cease until the ban period is over. This is usually not a long period.


I know that we need to pay Penalty of Rs 5000 to trade BANNED securities futures/options

DO we need to pay penalty for equity trade too?

I heard exchange prevents from trading a banned security. Still there be fine just because user tried going long or short on banned security (F&O)?

Can you please explain what it means to ‘apply for a manual rollover’? Thanks.

Rollover means selling Current series of Futures and buying next series.
Example 27th July is expiry for July series.
Roll over means selling July series and buying Aug series!

Its only applied on FO. No penalty as such for trading in Equities.

10 stocks under ban period on NSE
Security in ban period for the next trade date under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit.
Securities which are banned for trading include names such as Jain Irrigation, Fortis, Jet Airways, Grasim, Oil India, SRF, MRF, Ajanta Pharma, Kajaria Ceramics and Syndicate Bank.

what is the meaning of above??