Under the futures and options (F&O) segment, ten stocks were banned from trade on Wednesday, September 20, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Bharat Heavy Electricals (BHEL), Chambal Fertilizers, Delta Corp, Indiabulls Housing Finance, Indian Energy Exchange (IEX), Manappuram Finance, Punjab National Bank (PNB), REC Ltd and Zee Entertainment Enterprises (ZEEL).

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 Chambal Fertilizers stood at 88.4% of its MWPL at the closing time on Monday, while that of Balrampur Chini was 99.5%. IEX and REC saw the open interest for their F&O contracts touch 81% and 80.1%, respectively. 

The combined open interest for the derivatives contracts of Indiabulls Housing and BHEL stood at 87.6% and 89.9% of their MWPL on Monday. Manappuram and ZEEL were retained on the list as the open interest as a percentage of the MWPL of their F&O contracts stood at 83.9% and 86.4%, respectively, on September 18. 

All the above securities were retained on the list from Monday, September 18. Delta Corp and PNB were added to the list on Wednesday as the open interest of their F&O contracts touched 102.5% and 100.2%, 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 Hindustan Copper and India Cements declined below the 80% limit to 79.7% and 79.8%, respectively. They, hence, were exited 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.