Under the futures and options (F&O) segment, five stocks were banned from trade on Tuesday, 24 December, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Bandhan Bank, Granules India, Hindustan Copper, Manappuram Finance, 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.

Manappuram Finance, RBL Bank, and Hindustan Copper were retained on the list from Monday as the open interest as a percentage of the MWPL of its F&O contracts stood at 81.6%, 95.7%, and 81.9%, respectively. Granules India derivative contracts’ open interest is 85.7% of its MWPL on 24 December, compared to 80.3% for Bandhan Bank.  

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 the Steel Authority of India declined below the 80% limit. Hence, it was removed from the list on Tuesday.

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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