Under the futures and options (F&O) segment, ten stocks were banned from trade on Thursday, 8 August, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya Birla Capital Ltd, Aditya Birla Fashion and Retail,  Birlasoft Ltd, Gujarat Narmada Valley Fertilizers and Chemical Ltd, Hindustan Copper,  The India Cements Ltd, Indiamart Intermesh, LIC Housing Finance, Manappuram Finance, and RBL Bank.

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. 

Aditya Birla Capital, Birlasoft, and Gujarat Narmada Valley were retained on the list from Wednesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 86.9%, 88.7%, and 81.3%, respectively. Hindustan Copper derivative contracts’ open interest was 88.8% of its MWPL on 8 August, compared to 143.2% for India Cements and 94.4% for Indiamart Intermesh. 

Furthermore, LIC Housing Finance, Manappuram Finance, and RBL Bank were also retained on the list as their open interest is 102.2%, 98.5%, and 87.8%, respectively. 

The above securities were retained on the list from Wednesday, 7 August. Aditya Birla Fashion and Retail was added to the list on Thursday as the open interest of its F&O contracts reached 100.9%.

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 Chambal Fertilizers and Granules India Ltd declined below the 80% limit to 77.5% 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.

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