Under the futures and options (F&O) segment, eleven stocks were banned from trade on Wednesday, November 22, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Bharat Heavy Electricals Limited (BHEL), Chambal Fertilisers Ltd, Delta Corp Limited, Hindustan Copper Ltd, Indiabulls Housing Finance, India Cements Limited, Manappuram Finance Ltd, Multi Commodity Exchange of India (MCX), National Mineral Development Corporation (NMDC), RBL Bank Ltd, and Zee Entertainment Enterprises Ltd (ZEEL). 

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 96.7% and 90.3%, respectively, on November 21. Manappuram Finance saw the open interest for its F&O contracts touch 87.6% of its MWPL. 

The open interest for the derivative contracts of ZEEL stood at 87.3% of its MWPL at Tuesday’s closing time, while that of Chambal Fertilisers was 81.3%. Delta Corp and MCX saw the open interest for their F&O contracts touch 81.5% and 88.3%, respectively, on November 21. 

The combined open interest for the derivatives contracts of Indiabulls Housing and NMDC stood at 93.3% and 88% of their MWPL, respectively, on Tuesday. On Tuesday, the F&O contracts of BHEL and RBL Bank witnessed their open interest at 85.5% and 90.4% of their MWPL, respectively. All the above securities were retained on the list from Tuesday, November 21. , 

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.