Under the futures and options (F&O) segment, eleven stocks were banned from trade on Monday, 23 September, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aarti Industries Ltd, Biocon Ltd, Chambal Fertilizers Ltd, Gujarat Narmada Valley Fertilizers and Chemicals Ltd, Granules India Ltd, LIC Housing Finance Ltd, National Aluminium Ltd,  Oracle Financial Services, Punjab National Bank, RBL Bank, and Steel Authority of India 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 Ltd, Oracle Financial Services, Steel Authority of India, and Biocon were retained on the list from Friday as the open interest as a percentage of the MWPL of its F&O contracts stood at 84.6%, 99.1%, 89.4% and 91.3%, respectively. Chambal Fertilizers, Gujarat Narmada Valley, National Aluminium, and Granules India were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 97.4%, 89.6%, 89.3%, and 163.2%, respectively.

LIC Housing Finance derivative contracts’ open interest is 87.2% of its MWPL on 23 September, compared to 88.6% for Punjab National Bank and 80% for RBL Bank

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 Birlasoft Ltd declined below the 80% limit to 77.7%. Hence, it was removed from the list on Monday.

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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