Under the futures and options (F&O) segment, Fourteen stocks were banned from trade on Wednesday, 16 October by the National Stock Exchange (NSE). The securities banned for the F&O trade are Bandhan Bank, Chambal Fertilisers, Gujarat Narmada Valley Fertilizers and Chemicals, Granules India, Hindustan Copper, IDFC First Bank, Indian Energy Exchange Ltd, L&T Finance, Manappuram Finance, National Aluminium Ltd, Punjab National Bank, RBL Bank, Steel Authority of India Ltd, and Tata Chemicals 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. 

Chambal Fertilisers, Gujarat Narmada Valley, and Granules India, were retained on the list from Tuesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 93.8%, 94.3%, and 85.6%, respectively. Hindustan Copper derivative contracts’ open interest is 86.1% of its MWPL on 16 October, compared to 84% for IDFC First Bank and 86.6% for Manappuram Finance. 

Furthermore, the Steel Authority of India, Punjab National Bank, and RBL Bank were also retained on the list as their open interest is 85.8%, 88.9%, and 84%, respectively. Indian Energy Exchange, National Aluminium, and Tata Chemicals were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 100.9%, 93%, and 96.7%, respectively.

The above securities were retained on the list from Tuesday, 15 October. Bandhan Bank and L&T Finance were added to the list on Wednesday as the open interest of their F&O contracts reached 102.3% and 100.6%, 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 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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