Under the futures and options (F&O) segment, seven stocks were banned from trade on Thursday, October 12, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Hindustan Copper, India Cements, Indiabulls Housing Finance, L&T Finance Holdings (L&TFH), Manappuram Finance, 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. 

The open interest for the derivative contracts of L&T Finance Holdings stood at 86.1% of its MWPL at the closing time on Wednesday, while that of Manappuram was 85.8%. The combined open interest for the derivatives contracts of Indiabulls Housing and PNB stood at 88% and 84.8% of their MWPL on Wednesday. 

All the above securities were retained on the list from Wednesday, October 11. Balrampur Chini Mills, Hindustan Copper and India Cements were added to the list on Thursday as the open interest of their F&O contracts reached 104.7%, 100% 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 open interest for the F&O contracts of Delta Corp and Multi Commodity Exchange (MCX) declined below the 80% limit to 79% and 77.5%, respectively. They, hence, were exited from the list on Thursday. 

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.