Under the futures and options (F&O) segment, eight stocks were banned from trade on Monday, 24 June by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills Ltd, Chambal Fertilisers Ltd, Gujarat Narmada Valley Fertilisers and Chemical Limited, Granules India Ltd, Hindustan Aeronautics Ltd, Hindustan Copper, Indus Towers Ltd, and Piramal Enterprises Ltd. 

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 Chambal Fertilisers were retained on the list from Friday as the open interest as a percentage of the MWPL of its F&O contracts stood at 81.8%, 89.6%, and 106.2%, respectively. The Indus Towers derivative contracts’ open interest is 168.6% of its MWPL on 24 June, compared to 84.7% for Hindustan Copper, and 81.9% for Hindustan Aeronautics. 

The above securities were retained on the list from Friday, 21 June. Gujarat Narmada Vallery and Granules India were added to the list on Monday as the open interest of their F&O contracts reached 119.1% and 98.15%, 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 The India Cements Ltd and Steel Authority of India declined below the 80% limit. Hence, they were removed from the list on Monday.

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.