Under the futures and options (F&O) segment, five stocks were banned from trade on Thursday, 27 June by the National Stock Exchange (NSE). The securities banned for the F&O trade are Gujarat Narmada Valley Fertilisers and Chemical Limited, The India Cements, Indus Towers 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. 

Gujarat Narmada Valley and Indus Towers were retained on the list from Wednesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 88.9% and 129.3%, respectively. Punjab National Bank derivative contracts’ open interest is 83% of its MWPL on 27 June, compared to 83% for the Steel Authority of India.

The above securities were retained on the list from Wednesday, 26 June. The India Cements were added to the list on Thursday as the open interest of their F&O contracts reached 167.7%.

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 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.