Under the futures and options (F&O) segment, five stocks were banned from trade on Wednesday, 11 December, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Granules India Ltd, Manappuram Finance, Metropolis Healthcare, PVR Inox, and RBL Bank.

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.

Granules India derivative contracts’ open interest is 105.8% of its MWPL on 11 December, compared to 82.7% for Manappuram Finance, 85.4% for PVR Inox, and 90.1% for RBL Bank. 

The above securities were retained on the list from Tuesday, 10 December. Metropolis Healthcare was added to the list on Tuesday as the open interest of their F&O contracts reached 104.6%.

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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