Under the futures and options (F&O) segment, nine stocks were banned from trade on Thursday, October 19, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Delta Corp, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), Hindustan Copper, India Cements, Indiabulls Housing Finance, Manappuram Finance, Multi Commodity Exchange (MCX) and Steel Authority of India Ltd (SAIL). 

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 India Cements were retained on the list as the open interest as a percentage of the MWPL of their F&O contracts stood at 80.6% and 85.1%, respectively, on October 18. Balrampur Chini Mills saw the open interest for their F&O contracts touch 89.3%. 

The open interest for the derivative contracts of SAIL stood at 83.3% of its MWPL at the closing time on Wednesday, while that of Manappuram was 80.7%. Delta Corp and GNFC saw the open interest for their F&O contracts touch 84.4% and 82.9%, respectively, on October 18. 

The combined open interest for the derivatives contracts of Indiabulls Housing and MCX stood at 84.2% and 83.2% of their MWPL on Wednesday. All the above securities were retained on the list from Tuesday, October 18. 

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 Bharat Heavy Electricals Ltd (BHEL) declined below the 80% limit to 79%. It, hence, was exited 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.