Under the futures and options (F&O) segment, twelve stocks were banned from trade on Wednesday, January 10, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Bandhan Bank, Chambal Fertilizers, Delta Corp, Escorts Kubota, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), Hindustan Copper, India Cements, Indian Energy Exchange (IEX), National Aluminium Co, Piramal Enterprises 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. 

Chambal Fertilizers and Bandhan Bank were retained on the list as the open interest as a percentage of the MWPL of their F&O contracts stood at 84.3% and 97.7%, respectively, on January 9. The combined open interest for the derivatives contracts of GNFC and Delta Corp stood at 81.1% and 84.4% of their respective MWPLs on Tuesday. 

The open interest for National Aluminium’s derivative contracts stood at 86.9% of its MWPL at Tuesday’s closing time, while that of India Cements was 89.8%. SAIL and Hindustan Copper saw the open interest for their F&O contracts touch 85.6% and 104.6% of their respective MWPLs, respectively. 

At Tuesday’s closing time, the open interest for India Cements and IEX’s derivatives contracts was 89.8% and 82.1% of their respective MWPLs, respectively. Escort Kubota’s derivative contract open interest was 89.6% of its MWPL, compared to 89.2% for Piramal Enterprises. All the above securities were retained on the list from Tuesday, January 9. 

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 79.8%. Hence, it was exited from the list on Wednesday. 

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.