Under the futures and options (F&O) segment, eleven stocks were banned from trade on Monday, January 8, 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), 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 96.3% and 86%, respectively, on January 5. The combined open interest for the derivatives contracts of GNFC and Delta Corp stood at 88.4% and 94.3% of their respective MWPLs on Friday. 

The open interest for National Aluminium’s derivative contracts stood at 92.8% of its MWPL at Friday’s closing time, while that of India Cements was 96.7%. SAIL and ZEEL saw the open interest for their F&O contracts touch 89.6% and 88.2% of their respective MWPLs, respectively. 

All the above securities were retained on the list from Friday, January 5. Piramal Enterprises was added to the list on Monday as the open interest of its F&O contracts reached 97.2%.

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 Hindustan Copper declined below the 80% limit to 78%. Hence, they 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.