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Why do Futures & Option scrips enter ban period, what does it mean?

For any security, if its derivative contracts cross 95% of Market wide position limits (MWPL) then that security will be under the ban for F&O. 

It means the combined open interest [the number of contracts outstanding in futures and options trading on an official exchange at any one time.] of all option and future contracts for all the months taken together for that particular underlying crosses 95% of MWPL.

A user isn't allowed to open any new positions in securities under ban period but can exit already opened positions. To rollover contracts in ban period, you will have to call up the dealer desk (080 4040 2020 or 080 3310 2020] & ask to roll it over on your behalf.

To see the list of securities in ban period, click here. You can also check this out on the margin calculator.

To know more, check out this article on TradingQ&A.