Under the futures and options (F&O) segment, nine stocks were banned from trade on Friday, November 24, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Hindustan Copper, Hindustan Petroleum, Indiabulls Housing Finance, India Cements, Manappuram Finance, Multi Commodity Exchange of India (MCX), RBL Bank, 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 89.9% and 85.3%, respectively, on November 23. Manappuram Finance saw the open interest for its F&O contracts touch 82.4% of its MWPL. 

The open interest for the derivative contracts of ZEEL stood at 83.2% of its MWPL at Thursday’s closing time, while that of MCX was 80.1%. The F&O contracts of Indiabulls Housing and RBL Bank witnessed their open interest at 88.5% and 82% of their respective MWPL on November 23. 

All the above securities were retained on the list from Thursday, November 23. Balrampur Chini Mills and Hindustan Petroleum were added to the list on Friday as the open interest of their F&O contracts reached 105.6% and 95%, 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 open interest for the F&O contracts of National Mineral Development Corporation (NMDC) and Bharat Heavy Electricals Limited (BHEL) declined below the 80% limit to 79.3% and 77.3%, respectively. Hence, it was exited from the list on Friday. 

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.