Under the futures and options (F&O) segment, six stocks were banned from trade on Tuesday, October 10, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Delta Corp, Indiabulls Housing Finance, L&T Finance Holdings (L&TFH), Manappuram Finance, Multi Commodity Exchange (MCX) and Punjab National Bank (PNB). 

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. 

Delta Corp and Manappuram saw the open interest for their F&O contracts touch 83.7% and 89%, respectively, on October 10. The combined open interest for the derivatives contracts of Indiabulls Housing and PNB stood at 89% and 89.6% of their MWPL on Tuesday. 

All the above securities were retained on the list from Monday, October 9. L&T Finance Holdings and MCX were added to the list on Tuesday as the open interest of their F&O contracts touched 98.5% and 105%, 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 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.