Under the futures and options (F&O) segment, seven stocks were banned from trade on Monday, October 23, by the National Stock Exchange (NSE). The security banned for the F&O trade is Indiabulls Housing Finance.  

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. 

The open interest for the derivative contracts of Indiabulls Housing Finance stood at 81.8% of its MWPL at the closing time on Thursday. The above security was retained on the list from Friday, October 20. 

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 the F&O contracts of Balrampur Chini Mills, Delta Corp, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), India Cements, Indiabulls Housing Finance, Manappuram Finance and Multi Commodity Exchange (MCX) declined below the 80% limit. They, hence, were exited 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.