Under the futures and options (F&O) segment, nine stocks were banned from trade on Monday, 14 October by the National Stock Exchange (NSE). The securities banned for the F&O trade are Chambal Fertilisers, Gujarat Narmada Valley Fertilizers and Chemicals, Granules India, Hindustan Copper, IDFC First Bank, Manappuram Finance, Punjab National Bank, RBL Bank, and Steel Authority of India.

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. 

Chambal Fertilisers, Gujarat Narmada Valley, and Granules India, were retained on the list from Friday as the open interest as a percentage of the MWPL of its F&O contracts stood at 101.8%, 97.6%, and 88%, respectively. Hindustan Copper derivative contracts’ open interest is 88.5% of its MWPL on 14 October, compared to 86.4% for IDFC First Bank and 87.6% for Manappuram Finance. 

Furthermore, the Steel Authority of India, Punjab National Bank, and RBL Bank were also retained on the list as their open interest is 87.6%, 90.9%, and 88.9%, 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 F&O contracts of Bandhan Bank, Birlasoft, and Tata Chemicals declined below the 80% limit. Hence, they were removed 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.

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