Under the futures and options (F&O) segment, six stocks were banned from trade on Monday, September 25, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Canara Bank, Delta Corp, Granules India, Hindustan Copper, Indiabulls Housing Finance and Manappuram Finance. 

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. 

Hindustan Copper and Delta Corp saw the open interest for their F&O contracts touch 88.3% and 86.2%, respectively, on September 22. The combined open interest for the derivatives contracts of Indiabulls Housing and Manappuram stood at 84.7% and 80.5% of their MWPL on Friday. 

All the above securities were retained on the list from Friday, September 22. Canara Bank and Granules were added to the list on Monday as the open interest of its F&O contracts touched 106% and 95.7%, 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 the F&O contracts of Balrampur Chini Mills, Bharat Heavy Electricals (BHEL), Punjab National Bank (PNB), and Zee Entertainment Enterprises (ZEEL) declined below the 80% limit. They, hence, were exited from the list on Monday. 

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.