Under the futures and options (F&O) segment, eight stocks were banned from trade on Friday, 22 November, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aarti Industries Ltd, Aditya Birla Fashion and Retail Ltd, Adani Enterprises Ltd, Gujarat Narmada Valley Fertilizers, Granules India Ltd, Hindustan Copper, Indraprastha Gas, and National Aluminium 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.

Aarti Industries, Aditya Birla Fashion, and Granules India were retained on the list from Thursday as the open interest as a percentage of the MWPL of its F&O contracts stood at 92.7%, 80.4% and 84.7%, respectively.

Gujarat Narmada Valley derivative contracts’ open interest is 91.6% of its MWPL on 22 November, compared to 83.5% for Hindustan Copper and 93.6% for Indraprastha Gas.

The above securities were retained on the list from Thursday, 21 November. Adani Enterprises and National Aluminium were added to the list on Friday as the open interest of their F&O contracts reached 95.4% and 103.7%, 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.

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