Under the futures and options (F&O) segment, six stocks were banned from trade on Monday, 8 July, by the National Stock Exchange (NSE). The securities banned for the F&O trade are The Aditya Birla Fashion, Bandhan Bank, Gujarat Narmada Valley Fertilizers and Chemicals Ltd, Hindustan Copper, The India Cements, 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. 

The India Cements, Bandhan Bank, and Hindustan Copper were retained on the list from Friday as the open interest as a percentage of the MWPL of its F&O contracts stood at 108%, 93.4%, and 92.7%, respectively.  Aditya Birla Fashion derivative contracts’ open interest is 93.2% of its MWPL on 8 July, compared to 94.9% for Piramal Enterprise. 

The above securities were retained on the list from Friday, 5 July. Gujarat Narmada Valley was added to the list on Monday as the open interest of their F&O contracts reached 112.6%. 

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.