Under the futures and options (F&O) segment, one stock was banned from trade on Wednesday, October 25, by the National Stock Exchange (NSE). The security banned for the F&O trade is RBL Bank.  

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 RBL Bank stood at 101.4% of its MWPL at the closing time on Monday. The above security was added to the list for Wednesday, October 25. 

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 Indiabulls Housing Finance declined below the 80% limit to 78.4%. It, hence, was exited from the list on Tuesday. 

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.