Under the futures and options (F&O) segment, seven stocks were banned from trade on Monday, December 11, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Delta Corp, Hindustan Copper, Indiabulls Housing Finance, National Aluminium Co, Steel Authority Of India Ltd (SAIL) and Zee Entertainment Enterprises Ltd (ZEEL).

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. 

Delta Corp and Balrampur Chini were retained on the list as the open interest as a percentage of the MWPL of their F&O contracts stood at 88.6% and 128%, respectively, on December 8. Indiabulls Housing and National Aluminium saw the open interest for their F&O contracts touch 90.5% and 91.1% of their respective MWPL, respectively. The open interest for ZEEL’s derivative contracts stood at 80.2% of its MWPL at Friday’s closing time, while that of SAIL was 93.3%. 

All the above securities were retained on the list from Friday, December 8. Hindustan Copper was added to the list on Monday as the open interest of its F&O contracts reached 120.2%.

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 India Cements declined below the 80% limit to 75.3%. Hence, it was exited 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.