Under the futures and options (F&O) segment, five stocks were banned from trade on Thursday, 26 September by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya Birla Fashion and Retail Ltd, Granules India Ltd, Hindustan Copper Ltd, Vodafone Idea Ltd, and Indian Energy Exchange.  

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 Fashion, Granules India, and Vodafone Idea were retained on the list from Wednesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 83.7%, 118.2% and 91.8%, respectively. 

Hindustan Copper derivative contracts’ open interest is 91.5% of its MWPL on 26 September, compared to 92% for Indian Energy Exchange.

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.

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