Under the futures and options (F&O) segment, seven stocks were banned from trade on Tuesday, December 12, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Delta Corp, Hindustan Copper, India Cements, Indiabulls Housing Finance, National Aluminium Co and Steel Authority Of India Ltd (SAIL).

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. 

Delta Corp and Balrampur Chini were retained on the list as the open interest as a percentage of the MWPL of their F&O contracts stood at 87.4% and 122.8%, respectively, on December 10. Indiabulls Housing and National Aluminium saw the open interest for their F&O contracts touch 89% and 88.6% of their respective MWPL, respectively. The open interest for the derivative contracts of Hindustan Copper stood at 113% of its MWPL at Monday’s closing time, while that of SAIL was 89.3%. 

All the above securities were retained on the list from Monday, December 11. India Cements was added to the list on Tuesday as the open interest of its F&O contracts reached 104.1%.

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 Zee Entertainment Enterprises Ltd (ZEEL) declined below the 80% limit to 77.4%. Hence, it 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.