Under the futures and options (F&O) segment, eleven stocks were banned from trade on Friday, January 5, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Chambal Fertilizers, Delta Corp, Escorts Kubota, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), Hindustan Copper, India Cements, Indian Energy Exchange (IEX), National Aluminium Co, 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. 

Balrampur Chini and Hindustan Copper were retained on the list on January 5 as the open interest as a percentage of the MWPL of their F&O contracts stood at 89.9% and 81.1%, respectively. At Thursday’s closing, the open interest for National Aluminium’s derivative contracts stood at 97.6% of its MWPL. 

The combined open interest for the derivatives contracts of Delta Corp and IEX stood at 101.8% and 89.8% of their respective MWPLs on Thursday. SAIL and ZEEL saw the open interest for their F&O contracts touch 92.8% and 90.2% of their respective MWPLs, respectively. 

All the above securities were retained on the list from Thursday, January 4. Chambal Fertilizers, Escorts Kubota, Gujarat Narmada Valley Fertilizers and India Cements were added to the list on Friday as the open interest of its F&O contracts reached 108.8%, 102.4%, 103.9% and 110.3%, 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.