Under the futures and options (F&O) segment, thirteen stocks were banned from trade on Tuesday, February 13, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya Birla Fashion, Ashok Leyland, Aurobindo Pharma, Balrampur Chini Mills, Bandhan Bank, Biocon Ltd, Delta Corp, Hindustan Copper, India Cements, Indus Towers, Punjab National Bank (PNB), Steel Authority Of India (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. 

Ashok Leyland and Hindustan Copper were retained on the list from Monday as the open interest as a percentage of the MWPL of their F&O contracts stood at 86.8% and 80.9%, respectively. Indus Towers and India Cements saw the open interest for their F&O contracts touch 103.6% and 89.8% of their respective MWPLs, respectively. 

Aurobindo Pharma’s derivative contracts’ open interest was 87.7% of its MWPL on February 12, compared to 89.3% for Delta Corp. The open interest for Balrampur Chini’s derivative contracts stood at 88.4% of its MWPL at Monday’s closing time, while that of ZEEL was 98.1%. 

The combined open interest for SAIL’s derivatives contracts stood at 91.4% of its MWPL on February 12. At Monday’s closing time, the open interest for Biocon and PNB’s derivatives contracts was 85.6% and 85.4% of their respective MWPLs, respectively. 

All the above securities were retained on the list from Monday, February 12. Aditya Birla Fashion and Bandhan Bank were added to the list on Tuesday as the open interest of their F&O contracts reached 97% and 107.5%, 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 UPL Ltd declined below the 80% limit to 79.4%. 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.