Under the futures and options (F&O) segment, four stocks were banned from trade on Friday, November 10, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Delta Corp, Multi Commodity Exchange of India (MCX), Chambal Fertilisers and Gujarat Narmada Valley Fertilizers & Chemicals (GNFC). 

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. 

GNFC and Delta Corp were retained on the list as the open interest as a percentage of the MWPL of their F&O contracts stood at 83.2% and 93.3%, respectively, on November 9. 

Chambal Fertilisers and MCX were added to the list on Friday as the open interest of their F&O contracts reached 105.9 and 99.9%, 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 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.