Under the futures and options (F&O) segment, five stocks were banned from trade on Tuesday, September 26, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Canara Bank, Granules India, Hindustan Copper, and Indiabulls Housing Finance. 

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. 

Hindustan Copper and Granules India saw the open interest for their F&O contracts touch 85.3% and 84.3%, respectively, on September 25. The combined open interest for the derivatives contracts of Indiabulls Housing and Canara Bank stood at 83.5% and 90% of their MWPL on Monday. 

All the above securities were retained on the list from Monday, September 25. Balrampur Chini Mills was added to the list on Tuesday as the open interest of its F&O contracts touched 100.5%.

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 Delta Corp and Manappuram Finance declined below the 80% limit to 70.9% and 78.9%, respectively. They, hence, were exited from the list on Tuesday. 

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.