Under the futures and options (F&O) segment, ten stocks were banned from trade on Tuesday, 17 September by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aarti Industries Ltd, Balrampur Chini Mills Ltd, Bandhan Bank Ltd, Birlasoft Ltd, Chambal Fertilizers Ltd, Gujarat Narmada Valley Fertilizers and Chemicals Ltd, Granules India Ltd, Hindustan Copper Ltd, LIC Housing Finance 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. 

Balrampur Chini Mills, Aarti Industries Ltd, Granules India, and Hindustan Copper were retained on the list from Monday as the open interest as a percentage of the MWPL of its F&O contracts stood at 85.9%, 95%, 197.8%, and 81.4%, respectively.

Bandhan Bank’s derivative contracts’ open interest is 81.1% of its MWPL on 17 September, compared to 84.5% for RBL Bank and 81.4% for Chambal Fertilizers. 

The above securities were retained on the list from Monday, 16 September. Birlasoft Ltd, LIC Housing Finance Ltd, and Gujarat Narmada Valley Fertilizers and Chemicals Ltd, Granules India Ltd were added to the list on Tuesday as the open interest of their F&O contracts reached 109.1%, 116.4%, and 105.4%, 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 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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