Under the futures and options (F&O) segment, ten stocks were banned from trade on Wednesday, 18 September by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aarti Industries Ltd, Balrampur Chini Mills Ltd, Biocon Ltd, Birlasoft Ltd, Gujarat Narmada Valley Fertilizers and Chemicals Ltd, Granules India Ltd, Hindustan Copper Ltd, LIC Housing Finance Ltd, Punjab National Bank, 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 Tuesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 84.2%, 92.5%, 190.4%, and 80.9%, respectively.

Birlasoft derivative contracts’ open interest is 92.1% of its MWPL on 18 September, compared to 83.8% for RBL Bank, 102.5% for Gujarat Narmada Valley, and 104.6% for LIC Housing Finance. 

The above securities were retained on the list from Tuesday, 17 September. Biocon and Punjab National Bank were added to the list on Wednesday as the open interest of their F&O contracts reached 113.8% and 101.6%, 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 open interest for F&O contracts of Bandhan Bank Ltd and Chambal Fertilizers Ltd declined below the 80% limit to 78.9% and 78.6%, respectively. Hence, it was removed 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.

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