Under the futures and options (F&O) segment, nineteen stocks were banned from trade on Tuesday, 20 August, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aarti Industries Ltd, Aditya Birla Fashion and Retail, Balrampur Chini Mills Ltd, Bandhan Bank, Birlasoft Ltd, Chambal Fertilizers, Gujarat Narmada Valley Fertilizers and Chemicals, Granules India Ltd, Hindustan Copper Ltd, The India Cements Ltd, Indiamart Intermesh, LIC Housing Finance Ltd, Manappuram Finance Ltd, NMDC Ltd, Piramal Enterprises Ltd, Punjab National Bank, RBL Bank, Steel Authority of India, and Sun TV Network 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, Birlasoft, and Bandhan Bank were retained on the list from Monday as the open interest as a percentage of the MWPL of its F&O contracts stood at 106.5%, 88.7%, 119.6%, and 85.8%, respectively. Sun TV Network derivative contracts’ open interest is 92.2% of its MWPL on 20 August, compared to 129.4% for India Cements, 80.2% for Indiamart Intermesh, and 97.1% for Gujarat Narmada Valley. 

Furthermore, LIC Housing Finance, Manappuram Finance, NMDC, Piramal Enterprises, and RBL Bank were also retained on the list as their open interest is 88.9%, 83%, 81.9%, 90.5% and 82.2%, respectively. Granules India, Punjab National Bank, Chambal Fertilizers, and Steel Authority of India were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 86.8%, 80.9%, 81.7%, and 83.3%, respectively

The above securities were retained on the list from Monday, 19 August. Balrampur Chini Mills and Hindustan Copper Ltd were added to the list on Tuesday as the open interest of their F&O contracts reached 103.3% and 101.8%, 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 open interest for Biocon’s F&O contracts declined below the 80% limit to 79.1%. Hence, it was removed 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.

Unlock profitable opportunities every day! Unicorn Signals provides actionable intraday trading signals for stocks and futures. Don’t miss out – download Unicorn Signals and start winning now!