Why is trading restricted for Nifty Midcap contracts?

Trading is only allowed for Nifty Midcap's current week's option contract and the current month's futures contract. Nifty Midcap contracts are restricted from trading because they are illiquid. Trading in illiquid contracts involves the following risks:

• Bid-ask spread: Illiquid contracts tend to have wide bid-ask spreads. A bid-ask spread is the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept. A wider spread may result in a higher cost of trading and lower profits.
• Limited market depth: Illiquid contracts may have limited market depth. There may not be enough buyers or sellers in the market to execute trades at the desired prices. This can make it difficult to enter or exit a position.
• Increased volatility: Because of the limited trading activity in illiquid contracts, prices can be more volatile, which can result in sudden and large price movements.