Under the futures and options (F&O) segment, sixteen stocks were banned from trade on Wednesday, 14 August, by the National Stock Exchange (NSE). The securities banned for the F&O trade Aarti Industries Ltd, Aditya Birla Capital Ltd, Aditya Birla Fashion and Retail, Bandhan Bank, Biocon Ltd, Birlasoft Ltd, Chambal Fertilizers, Granules India Ltd, The India Cements Ltd, Indiamart Intermesh, LIC Housing Finance, Manappuram Finance, Punjab National Bank, RBL Bank, Steel Authority of India, and Sun TV Network 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. 

Aditya Birla Capital, Aditya Birla Fashion, Birlasoft, and Bandhan Bank were retained on the list from Tuesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 82.1%, 91.5%, 83.5%, and 90.2%, respectively. Sun TV Network derivative contracts’ open interest is 100.8% of its MWPL on 14 August, compared to 135.5% for India Cements, 86.8% for Indiamart Intermesh, and 88.1% for Biocon. 

Furthermore, LIC Housing Finance, Manappuram Finance, and RBL Bank were also retained on the list as their open interest is 93.7%, 88.9%, and 85.3%, respectively. Granules India, Punjab National Bank, and Steel Authority of India were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 90.3%, 85.4%, and 90.5%, respectively.

The above securities were retained on the list from Tuesday, 13 August. Aarti Industries and Chambal Fertilizers were added to the list on Wednesday as the open interest of their F&O contracts reached 141.4% and 99.1%, 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 Copper declined below the 80% limit to 78.7%. Hence, it was removed from the list on Wednesday.

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.

Tired of missing hot stocks? Unicorn Signals provides powerful tools like stock scans and more help you make informed trading decisions. Download now and take control of your portfolio!