Under the futures and options (F&O) segment, seven stocks were banned from trade on Tuesday, November 28, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Bharat Heavy Electricals Limited (BHEL), Granules India, Hindustan Copper Ltd, Hindustan Petroleum Corp, Indiabulls Housing Finance, 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 Indiabulls Housing were retained on the list as the open interest as a percentage of the MWPL of their F&O contracts stood at 80.9% and 86.3%, respectively, on November 24. 

The open interest for ZEEL’s derivative contracts stood at 80.5% of its MWPL at Friday’s closing time, while that of BHEL was 105.1%. All the above securities were retained on the list from Friday, November 24. 

Balrampur Chini Mills, Granules India and Hindustan Petroleum Corp were added to the list on Tuesday as the open interest of their F&O contracts reached 87.8%, 96.7% and 82.6%, 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 India Cements Limited, Manappuram Finance Ltd, Multi Commodity Exchange of India (MCX), National Mineral Development Corporation (NMDC) and RBL Bank Ltd declined below the 80% limit. Hence, they were 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.