Intra trading would not increase OI and thus there would be no negative consequences. For Banned scripts Zerodha could add a mechanism similar to MIS AutoSquare off, where script would be AutoSquared off at 3 PM, thus will not result in overnight position.
Hi Sahil,
A derivative contract enters ban period if the total open position exceeds 95% of the open interest, and as you know this rule has been set by the exchange, now when clients place an order a position is created be it on intraday or on carry forward, the reason it has entered the ban also could be attributed to increase in speculation on that day , as a SEBI registered broker Zerodha or any other broker in India would and should not allow that.
This is what NSE says on their site
https://www.nseindia.com/products/content/derivatives/equities/sec_ban.htm
Thanks,
Lindo
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