Under the futures and options (F&O) segment, nine stocks were banned from trade on Wednesday, August 16, by the National Stock Exchange (NSE). 

The securities banned for the F&O trade are Balrampur Chini Mills, Chambal Fertilisers, Delta Corp, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), Granules India, India Cements, Indiabulls Housing Finance, Manappuram Finance, and Zee Entertainment Enterprises 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. 

The open interest for the derivative contracts of Delta Corp stood at 91.3% at the closing time on Monday, while that of Manappuram Finance was 84.9%. Balrampur Chini and Chambal Fertilisers saw the open interest for their F&O contracts touch 82.5% and 91.7%, respectively, on August 14. 

Indiabulls F&O contracts saw their open interest reach 89.1% on Monday. India Cements, Granules India and Zee Entertainment Ltd were retained on the list as the open interest of their F&O contracts stood at 108.3%, 90.4% and 89.8%, respectively, on Monday.

All the above securities were retained on the list from Monday, August 14. GNFC was added to the list as the open interest of its F&O contracts touched 102.2% on Monday.

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 contracts of Hindustan Copper declined below the 80% limit to 78.5%. It hence was 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.