Under the futures and options (F&O) segment, six stocks were banned from trade on Monday, 23 December, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Bandhan Bank, Granules India, Hindustan Copper, Manappuram Finance, 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 Hindustan Copper were retained on the list from Friday as the open interest as a percentage of the MWPL of its F&O contracts stood at 86%, 80.8%, and 85.2%, respectively. Granules India derivative contracts’ open interest is 87.6% of its MWPL on 23 December, compared to 85.7% for Bandhan Bank.  

The above securities were retained on the list from Friday, 20 December. RBL Bank was added to the list on Monday as the open interest of their F&O contracts reached 100.6%.

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 open interest for F&O contracts of NMCD and PVR Inox declined below the 80% limit. 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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