Under the futures and options (F&O) segment, seven stocks were banned from trade on Friday, October 13, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Bharat Heavy Electricals Ltd (BHEL), Delta Corp, Hindustan Copper, India Cements, Indiabulls Housing Finance, L&T Finance Holdings (L&TFH), Manappuram Finance, Punjab National Bank (PNB), and Sun TV Network.

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. 

Hindustan Copper and India Cements were retained on the list as the open interest as a percentage of the MWPL of their F&O contracts stood at 94% and 98.3%, respectively, on October 13. Balrampur Chini Mills saw the open interest for their F&O contracts touch 100.5%. 

The open interest for the derivative contracts of L&T Finance Holdings stood at 84% of its MWPL at the closing time on Friday, while that of Manappuram was 84.4%. The combined open interest for the derivatives contracts of Indiabulls Housing and PNB stood at 87.3% and 84% of their MWPL on Friday. 

All the above securities were retained on the list from Thursday, October 12. Bharat Heavy Electricals Ltd (BHEL), Delta Corp, and Sun TV Network were added to the list on Friday as the open interest of their F&O contracts reached 99.8%, 112.6% and 107.6%, 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.