Under the futures and options (F&O) segment, seven stocks were banned from trade on Thursday, 12 September by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aarti Industries Ltd, Aditya Birla Fashion and Retail Ltd, Balrampur Chini Mills Ltd, Bandhan Bank Ltd, Chambal Fertilizers Ltd, Hindustan Copper Ltd, 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. 

Aditya Birla Fashion, Balrampur Chini Mills, and Hindustan Copper were retained on the list from Wednesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 86.2%, 90.9%, and 86.3%, respectively.

Bandhan Bank’s derivative contracts’ open interest is 86.8% of its MWPL on 12 September, compared to 86.5% for RBL Bank and 87.3% for Chambal Fertilizers. 

The above securities were retained on the list from Wednesday, 11 September. Aarti Industries Ltd was added to the list on Thursday as the open interest in their F&O contracts reached 106.6%.

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 Biocon Ltd declined below the 80% limit to 78.4%. Hence, it was removed from the list on Thursday.

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.

Tired of guessing stocks to trade in daily?
Unicorn Signals empowers you with powerful tools like daily stock scans for Intraday, Swing & Investing, Market Predictions and much more. Download the Unicorn Signals app today and take control of your investments!