Under the futures and options (F&O) segment, six stocks were banned from trade on Wednesday, September 27, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Canara Bank, Delta Corporation, Hindustan Copper, India Cements and Indiabulls Housing Finance. 

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. 

Balrampur Chini and Hindustan Copper saw the open interest for their F&O contracts touch 86.3% and 83.2%, respectively, on September 26. The combined open interest for the derivatives contracts of Indiabulls Housing and Canara Bank stood at 82% and 81.3% of their MWPL on Wednesday. 

All the above securities were retained on the list from Tuesday, September 26. Delta Corp and India Cements were added to the list on Wednesday as the open interest of their F&O contracts touched 127.2% and 95.5%, respectively.

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 Granules India declined below the 80% limit to 79.2%. It, hence, was exited from the list on Wednesday. 

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.