Under the futures and options (F&O) segment, three stocks were banned from trade on Wednesday, July 27, by the National Stock Exchange (NSE). The securities banned for F&O trade are Delta Corp, 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 82.1% at the closing time on Wednesday, while that of Sun TV network was 89.1%. Delta Corp’s open interest reached 81.6% of the MWPL. All the above securities were retained on the list from Wednesday, July 26. 

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 Wednesday, Canara Bank and Indiabulls Housing Finance exited the F&O ban list as their open interest dropped to 77.7% and 76.6%, respectively. 

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.