Under the futures and options (F&O) segment, seven stocks were banned from trade on Wednesday, 11 September by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya Birla Fashion and Retail Ltd, Balrampur Chini Mills Ltd, Bandhan Bank Ltd, Biocon Ltd, Chambal Fertilizers 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. 

Aditya Birla Fashion, Balrampur Chini Mills, RBL Bank, and Hindustan Copper were retained on the list from Tuesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 88.6%, 93.2%, 87.2%, and 87.4%, respectively.

Bandhan Bank’s derivative contracts’ open interest is 88.3% of its MWPL on 11 September, compared to 83.3% for Biocon and 89.5% 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 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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