Under the futures and options (F&O) segment, eight stocks were banned from trade on Friday, September 22, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Bharat Heavy Electricals (BHEL), Delta Corp, Hindustan Copper, Indiabulls Housing Finance, Manappuram Finance, Punjab National Bank (PNB), and Zee Entertainment Enterprises (ZEEL).

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. 

The open interest for the derivative contracts of Balrampur Chini Mills stood at 87.2% of its MWPL at the closing time on Thursday. PNB and Delta Corp saw the open interest for their F&O contracts touch 80.9% and 90.7%, respectively. 

The combined open interest for the derivatives contracts of Indiabulls Housing and BHEL stood at 85.3% and 81.1% of their MWPL on Thursday. Manappuram and ZEEL were retained on the list as the open interest as a percentage of the MWPL of their F&O contracts stood at 82% and 81.6%, respectively, on September 21. All the above securities were retained on the list from Thursday, September 21. 

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 the F&O contracts of Chambal Fertilizers declined below the 80% limit to 79.6%. It, hence, was exited from the list on Friday. 

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.