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Under the futures and options (F&O) segment, eleven stocks were banned from trade on Monday, October 16, 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), Steel Authority of India Ltd (SAIL) 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 89.7% and 92.9%, respectively, on October 13. Balrampur Chini Mills saw the open interest for their F&O contracts touch 98.8%.
The open interest for the derivative contracts of L&T Finance Holdings stood at 82.2% of its MWPL at the closing time on Friday, while that of Manappuram was 83.6%. Delta Corp and Sun TV Network saw the open interest for their F&O contracts touch 104.7% and 95.8%, respectively, on October 13.
On October 13, BHEL saw its open interest reach 93.9% of its MWPL. The combined open interest for the derivatives contracts of Indiabulls Housing and PNB stood at 86.7% and 82.6% of their MWPL on Friday.
All the above securities were retained on the list from Friday, October 13. SAIL was added to the list on Monday as the open interest of their F&O contracts reached 95.3%.
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.
