Under the futures and options (F&O) segment, nine stocks were banned from trade on Thursday, November 23, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Bharat Heavy Electricals Limited (BHEL), 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 94.7% and 87.2%, respectively, on November 22. Manappuram Finance saw the open interest for its F&O contracts touch 86.1% of its MWPL. 

The open interest for the derivative contracts of ZEEL stood at 84.6% of its MWPL at Wednesday’s closing time, while that of MCX was 85.8%. The F&O contracts of BHEL and RBL Bank witnessed their open interest at 81.7% and 97.4% of their respective MWPL on November 22. 

The combined open interest for the derivatives contracts of Indiabulls Housing and NMDC stood at 90.4% and 83.6% of their MWPL, respectively, on Wednesday. All the above securities were retained on the list from Wednesday, November 22. 

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 Chambal Fertilisers and Delta Corp Limited declined below the 80% limit to 77.7% and 78.1%, respectively. Hence, it was 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.