Under the futures and options (F&O) segment, five stocks were banned from trade on Wednesday, September 6, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, BHEL, Delta Corp, Hindustan Copper, India Cements and Indiabulls Housing 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. 

The open interest for the derivative contracts of BHEL stood at 91.2% at the closing time on Tuesday, while that of Balrampur Chini was 108.1%. Hindustan Copper saw the open interest for its F&O contracts touch 97% on September 5. Indiabulls and India Cements were retained on the list as the open interest of their F&O contracts stood at 107.1% and 99.4%, respectively, on Tuesday. 

All the above securities were retained on the list from Tuesday, September 5. Delta Corp was added to the list on Wednesday as the open interest of its F&O contracts touched 107.7%.

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.