Under the futures and options (F&O) segment, Fourteen stocks were banned from trade on Monday, 18 October by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aarti Industries Ltd, Bandhan Bank, Birlasoft Ltd, Chambal Fertilizers, Gujarat Narmada Valley Fertilizers and Chemicals, Granules India, Hindustan Copper, IDFC First Bank, Indian Energy Exchange Ltd, L&T Finance, National Aluminium Ltd, Punjab National Bank, Steel Authority of India Ltd, and Tata Chemicals Ltd.

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, Gujarat Narmada Valley, and Granules India, were retained on the list from Friday as the open interest as a percentage of the MWPL of its F&O contracts stood at 86.4%, 89%, and 82.3%, respectively. Hindustan Copper derivative contracts’ open interest is 83.2% of its MWPL on 21 October, compared to 81.8% for IDFC First Bank and 94.7% for Bandhan Bank. 

Furthermore, the Steel Authority of India, L&T Finance, and Punjab National Bank were also retained on the list as their open interest is 81.9%, 90.1%, and 84.9%, respectively. Indian Energy Exchange, National Aluminium, and Tata Chemicals were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 93.7%, 81.6%, and 86.5%, respectively.

The above securities were retained on the list from Friday, 18 October. Aarti Industries and Birlasoft were added to the list on Monday as the open interest of their F&O contracts reached 99.6% and 99.8%, 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 open interest for F&O contracts of Manappuram Finance and RBL Bank declined below the 80% limit. Hence, they were removed 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.

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