Under the futures and options (F&O) segment, ten stocks were banned from trade on Monday, 28 October by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aarti Industries Ltd, Bandhan Bank, Dixon Technologies (India), Escorts Kubota Ltd, IDFC First Bank Ltd, Indiamart Intermesh Ltd, L&T Finance Ltd, Manappuram Finance Ltd, NMDC Ltd, and RBL Bank Ltd.

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. 

Aarti Industries, Bandhan Bank, Escorts Kabuta, and RBL Bank were retained on the list from Friday as the open interest as a percentage of the MWPL of its F&O contracts stood at 82.4%, 82.1%, 94.6%, and 96.6%, respectively. Indiamart Intermesh derivative contracts’ open interest is 114.5% of its MWPL on 28 October, compared to 84.5% for NMDC, 95.75  for L&T Finance, and 89.6% for Manappuram Finance. 

The above securities were retained on the list from Friday, 25 October. Dixon Technologies (India) and IDFC First Bank were added to the list on Monday as the open interest of their F&O contracts reached 108.9% and 105.4%, 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 Indian Energy Exchange and Piramal Enterprises 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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