Under the futures and options (F&O) segment, eleven stocks were banned from trade on Tuesday, January 23, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya Birla Fashion and Retail, Balrampur Chini Mills, Delta Corp, Indian Energy Exchange (IEX), Indian Railway Catering and Tourism Corporation (IRCTC), National Aluminium Co, Oracle Financial Services Software, Polycab India, RBL Bank, Steel Authority of India Ltd (SAIL), 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. 

Aditya Birla Fashion 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 80% and 86.5%, respectively, on January 20. Delta Corp and RBL Bank saw the open interest for their F&O contracts touch 81.8% and 91% of their respective MWPLs, respectively. 

The open interest for ZEEL’s derivative contracts stood at 86.1% of its MWPL at Saturday’s closing time, while that of National Aluminium was 93.8%. Polycab’s derivative contract open interest was 83.3% of its MWPL, while the same for SAIL stood at 86.3% on January 20.

The combined open interest for the derivatives contracts of IEX and Oracle Financial Services stood at 80.2% and 98.5% of their MWPL, respectively, on Saturday. All the above securities were retained on the list from Saturday, January 20. IRCTC was added to the list on Tuesday as the open interest of its F&O contracts reached 98.5%. 

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 Hindustan Copper declined below the 80% limit to 78.1%. 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.