Under the futures and options (F&O) segment, three stocks were banned from trade on Wednesday, 4 September by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya Birla Fashion and Retail Ltd, Balrampur Chini Mills Ltd and Hindustan Copper 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. 

Balrampur Chini Mills and Hindustan Copper were retained on the list from Tuesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 109.7% and 100%, respectively.

The above securities were retained on the list from Tuesday, 3 September. Aditya Birla Fashion was added to the list on Wednesday as the open interest of their F&O contracts reached 102.3%.

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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