Under the futures and options (F&O) segment, ten stocks were banned from trade on Thursday, 19 December, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Bandhan Bank, Chambal Fertilizers, Granules India, Hindustan Copper, Manappuram Finance, National Aluminium, NMCD, PVR Inox, RBL Bank, and Steel Authority of India. 

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.

Manappuram Finance, Steel Authority of India, and RBL Bank were retained on the list from Wednesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 93%, 86.3%, and 81.8%, respectively. Granules India derivative contracts’ open interest is 94% of its MWPL on 19 December, compared to 89.8% for Hindustan Copper and 80.3% for National Aluminium.  

Bandhan Bank, Chambal Fertilizers, and PVR Inox were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 95%, 84%, and 85.4%, respectively.

The above securities were retained on the list from Wednesday, 18 December. NMDC was added to the list on Thursday as the open interest of their F&O contracts reached 96.9%.

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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