Under the futures and options (F&O) segment, eight stocks were banned from trade on Tuesday, 25 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, Indus Towers Ltd, Piramal Enterprises Ltd, Punjab National Bank, 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 Chambal Fertilisers were retained on the list from Monday as the open interest as a percentage of the MWPL of its F&O contracts stood at 80.3%, 84.3%, and 85.9%, respectively. The Indus Towers derivative contracts’ open interest is 157.4% of its MWPL on 25 June, compared to 106% for Gujarat Narmada Valley, and 83.2% for Granules India.

The above securities were retained on the list from Monday, 24 June. Punjab National Bank and Steel Authority of India were added to the list on Tuesday as the open interest of their F&O contracts reached 95.3% and 96.8%, 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 Hindustan Aeronautics Ltd and Hindustan Copper declined below the 80% limit to 76.7% and 80%. Hence, they were removed 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.