Under the futures and options (F&O) segment, seven stocks were banned from trade on Monday, 25 November, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aarti Industries Ltd, Adani Enterprises Ltd, Gujarat Narmada Valley Fertilizers, Granules India Ltd, Hindustan Copper, Indraprastha Gas, and National Aluminium 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, Adani Enterprises, National Aluminium, and Granules India were retained on the list from Friday as the open interest as a percentage of the MWPL of its F&O contracts stood at 90.1%, 84.2%, 85.2%, and 83.1%, respectively.

Gujarat Narmada Valley derivative contracts’ open interest is 89.2% of its MWPL on 25 November, compared to 82.9% for Hindustan Copper and 86.8% for Indraprastha Gas.

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. Aditya Birla  

The open interest for F&O contracts of Aditya Birla Fashion declined below the 80% limit. Hence, they were 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.

Feeling overwhelmed by the markets? Let Unicorn Signals be your guide. Our user-friendly app simplifies complex data and provides actionable trading signals. Download the app today and trade with confidence!