Under the futures and options (F&O) segment, six stocks were banned from trade on Wednesday, October 11, 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 81.8% and 86.8%, respectively, on October 11. The combined open interest for the derivatives contracts of Indiabulls Housing and PNB stood at 88.4% and 87.2% of their MWPL on Wednesday. 

The open interest for the derivative contracts of L&T Finance Holdings stood at 89.8% of its MWPL at the closing time on Wednesday, while that of MCX was 91.5%. All the above securities were retained on the list from Wednesday, October 10. 

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.