Under the futures and options (F&O) segment, seven stocks were banned from trade on Monday, 16 September by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aarti Industries Ltd, Balrampur Chini Mills Ltd, Bandhan Bank Ltd, Chambal Fertilizers Ltd, Granules India Ltd, Hindustan Copper Ltd, and RBL Bank.  

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, Aarti Industries Ltd, Granules India, and Hindustan Copper were retained on the list from Friday as the open interest as a percentage of the MWPL of its F&O contracts stood at 86.8%, 96.8%, 207.4%, and 84.4%, respectively.

Bandhan Bank’s derivative contracts’ open interest is 82.6% of its MWPL on 16 September, compared to 85% for RBL Bank and 83.5% for Chambal Fertilizers. 

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 Aditya  Birla Fashion declined below the 80% limit to 78.9%. 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.

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