Under the futures and options (F&O) segment, fifteen stocks were banned from trade on Thursday, February 22, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Ashok Leyland, Balrampur Chini Mills, Bandhan Bank, Biocon Ltd, Canara Bank, GMR Airports Infra, Gujarat Narmada Valley Fertilizers and Chemicals (GNFC), Hindustan Copper, India Cements, Indus Towers, National Aluminium Co, Piramal Enterprises, PVR Inox, RBL Bank 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. 

Biocon and Balrampur Chini were retained on the list from Wednesday as the open interest as a percentage of the MWPL of their F&O contracts stood at 87.4% and 101.1%, respectively. Hindustan Copper’s derivative contracts’ open interest was 84.4% of its MWPL on February 21, compared to 86.1% for National Aluminium. 

Indus Towers and India Cements saw the open interest for their F&O contracts touch 94.8% and 80.5% of their respective MWPLs, respectively. At Wednesday’s closing time, the open interest for Canara Bank and Bandhan Bank’s derivatives contracts was 82.4% and 84.7% of their respective MWPLs, respectively. 

The open interest for RBL Bank’s derivative contracts stood at 99.5% of its MWPL at Wednesday’s closing time, while that of ZEEL was 85%. The combined open interest for the derivatives contracts of GMR Infra and GNFC each stood at 87.6% and 89.4% of their MWPL, respectively, on February 21. 

All the above securities were retained on the list from Wednesday, February 21. Ashok Leyland, Piramal and PVR Inox were added to the list on Thursday as the open interest of their F&O contracts reached 96.5%, 98.8% and 97.2%, 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 the Steel Authority Of India (SAIL) declined below the 80% limit to 79.1%. Hence, it was exited from the list on Thursday. 

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.