Under the futures and options (F&O) segment, fourteen stocks were banned from trade on Friday, 23 August, by the National Stock Exchange (NSE). The securities banned for the F&O trade Aarti Industries Ltd, Aditya Birla Fashion and Retail, Birlasoft Ltd, Chambal Fertilizers Ltd, Gujarat Narmada Valley Fertilizers and Chemicals, Granules India Ltd, Hindustan Copper Ltd, Indian Energy Exchange Ltd, The India Cements Ltd, LIC Housing Finance Ltd, National Aluminium, Piramal Enterprises Ltd, RBL Bank Ltd, 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. 

Aarti Industries, Aditya Birla Fashion, and Birlasoft were retained on the list from Thursday as the open interest as a percentage of the MWPL of its F&O contracts stood at 93.2%, 86.6% and 102.6%, respectively. Sun TV Network derivative contracts’ open interest is 85.7% of its MWPL on 23 August, compared to 123% for India Cements. 

Furthermore, LIC Housing Finance, Gujarat Narmada Valley, and Piramal Enterprises were also retained on the list as their open interest is 82.8%, 83.9%, and 81.2%, respectively. Granules India, Hindustan Copper, and National Aluminium were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 82.7%, 89.9%, and 89.4%, respectively.

The above securities were retained on the list from Thursday, 22 August. Chambal Fertilizers Ltd, Indian Energy Exchange Ltd, and RBL Bank were added to the list on Friday as the open interest of their F&O contracts reached 103.7%, 100.5%, and 97.2%, 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 Balrampur Chini Mills Ltd declined below the 80% limit. Hence, it was removed from the list on Friday.

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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