Under the futures and options (F&O) segment, five stocks were banned from trade on Wednesday, July 26, by the National Stock Exchange (NSE). 

The securities banned for F&O trade are Canara Bank, Delta Corp, Indiabulls Housing Finance, RBL Bank and Sun TV Network.

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 RBL Bank stood at 101.2% at the closing time on Tuesday, while that of Indiabulls Housing was 82.1%. Delta Corp’s open interest reached 98.7% of the MWPL.

All the above securities were retained on the list from Tuesday, July 25. Sun TV Network was added to the list, replacing Punjab National Bank,  as the open interest of its F&O contracts touched 95.7% Tuesday.

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.

On Tuesday, Punjab National Bank exited the F&O ban list as its open interest dropped to 75.2%. 

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.