Under the futures and options (F&O) segment, twelve stocks were banned from trade on Wednesday, August 23, by the National Stock Exchange (NSE). 

The securities banned for the F&O trade are BHEL, Delta Corp, Escorts Kubota, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), Hindustan Copper, India Cements, Indiabulls Housing Finance, Manappuram Finance, Metropolis Healthcare, Punjab National Bank (PNB), Steel Authority of India (SAIL), 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. 

The open interest for the derivative contracts of SAIL stood at 82.7% at the closing time on Tuesday, while that of Delta Corp was 82.7.%. PNB and ZEEL saw the open interest for their F&O contracts touch 87.4% and 81.1%, respectively, on August 22. 

On Tuesday, GNFC F&O contracts saw their open interest reach 88.4%. Indiabulls and India Cements were retained on the list as the open interest of their F&O contracts stood at 82% and 95.3%, respectively, on August 22. The combined open interest for the derivatives contracts of Hindustan Copper and Manappuram stood at 98.2% and 102.1%, respectively, on Tuesday. 

All the above securities were retained on the list from Tuesday, August 22. BHEL and Escorts were added to the list on Wednesday as the open interest of their F&O contracts touched 123.4% and 96.4%, 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 Chambal Fertilisers’ contracts declined below the 80% limit to 78.9%. It hence was exited 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.