Under the futures and options (F&O) segment, four stocks were banned from trade on Wednesday, 28 August, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills Ltd, Birlasoft Ltd, Hindustan Copper Ltd, and The India Cements 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, Birlasoft, and India Cements were retained on the list from Tuesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 80.4%, 81.2%, and 105.8%, respectively. 

The above securities were retained on the list from Tuesday, 27 August. Hindustan Copper was added to the list on Wednesday as the open interest of their F&O contracts reached 102.3%.

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 Aarti Industries Ltd, Aditya Birla Fashion and Retail, Chambal Fertilizers Ltd, Indian Energy Exchange Ltd, and RBL Bank Ltd declined below the 80% limit. Hence, it was removed from the list on Wednesday.

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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