Under the futures and options (F&O) segment, thirteen stocks were banned from trade on Tuesday, January 9, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Bandhan Bank, Chambal Fertilizers, Delta Corp, Escorts Kubota, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), Hindustan Copper, India Cements, Indian Energy Exchange (IEX), National Aluminium Co, Piramal Enterprises, Steel Authority of India Ltd (SAIL) and Zee Entertainment Enterprises Ltd (ZEEL). 

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. 

Chambal Fertilizers and Balrampur Chini were retained on the list as the open interest as a percentage of the MWPL of their F&O contracts stood at 87.9% and 82%, respectively, on January 8. The combined open interest for the derivatives contracts of GNFC and Delta Corp stood at 83% and 86.8% of their respective MWPLs on Monday. 

The open interest for National Aluminium’s derivative contracts stood at 89% of its MWPL at Monday’s closing time, while that of India Cements was 92.1%. SAIL and ZEEL saw the open interest for their F&O contracts touch 87% and 86% of their respective MWPLs, respectively. 

At Monday’s closing time, the open interest for India Cements and IEX’s derivatives contracts was 92.1% and 83.7% of their respective MWPLs, respectively. Escort Kubota’s derivative contract open interest was 92.8% of its MWPL, compared to 91.8% for Piramal Enterprises. 

All the above securities were retained on the list from Monday, January 8. Bandhan Bank and Hindustan Copper were added to the list on Tuesday as the open interest of its F&O contracts reached 107.7% and 112.1%, respectively.

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.