Under the futures and options (F&O) segment, eight stocks were banned from trade on Thursday, 20 June by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills Ltd, Chambal Fertilizers Ltd, Hindustan Aeronautics Ltd, Hindustan Copper, The India Cements Ltd, Indus Towers Ltd, Piramal Enterprises Ltd, and, Steel Authority of India. 

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. 

Balrampur Chini Mills, Piramal Enterprises, and Steel Authority of India were retained on the list from Wednesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 92.7%, 99.7% and 81.9%, respectively. The India Cements derivative contracts’ open interest is 85.1% of its MWPL on 20 June, compared to 90% for Hindustan Copper.

The above securities were retained on the list from Wednesday, 19 June. Chambal Fertilizers, Hindustan Aeronautics, and Indus Towers were added to the list on Thursday as the open interest of their F&O contracts reached 107.8%, 96.5%, and 196.4%, 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 F&O contracts of Gujarat Narmada Valley and Sun TV Network Ltd declined below the 80% limit to 79.2% and 79.9%, respectively. Hence, it was removed from the list on Thursday.

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.