Under the futures and options (F&O) segment, nine stocks were banned from trade on Monday, 22 July by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Bandhan Bank, GMR AIrports, Hindustan Aeronautics, Hindustan Copper, The India Cements Ltd, Piramal Enterprises, Steel Authority of India, and Vedanta 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, GMR Airports, and Bandhan Bank were retained on the list from Friday as the open interest as a percentage of the MWPL of its F&O contracts stood at 81%, 82%, and 89.7%, respectively. Hindustan Copper derivative contracts’ open interest is 82.8% of its MWPL on 22 July, compared to 88.9% for Hindustan Aeronautics and 135.5% for the India Cements. 

Furthermore, Piramal Enterprises, Steel Authority of India, and Vedanta Ltd were also retained on the list as their open interest is 84.4%, 90.9% and 83.6%, 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 F&O contracts of Gujarat Narmada Valley Fertilizers and Chemicals Ltd and RBL Bank declined below the 80% limit to 77.5%, and 79.8%, respectively. Hence, it was removed 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.