Under the futures and options (F&O) segment, twelve stocks were banned from trade on Tuesday, October 17, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Bharat Heavy Electricals Ltd (BHEL), Delta Corp, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), Hindustan Copper, India Cements, Indiabulls Housing Finance, Manappuram Finance, Multi Commodity Exchange (MCX), Punjab National Bank (PNB), Steel Authority of India Ltd (SAIL) 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. 

Hindustan Copper and India Cements were retained on the list as the open interest as a percentage of the MWPL of their F&O contracts stood at 86.1% and 89.7%, respectively, on October 16. Balrampur Chini Mills saw the open interest for their F&O contracts touch 96.1%. 

The open interest for the derivative contracts of SAIL stood at 90.7% of its MWPL at the closing time on Monday, while that of Manappuram was 83.4%. Delta Corp and Sun TV Network saw the open interest for their F&O contracts touch 91.5% and 84%, respectively, on October 16. 

The combined open interest for the derivatives contracts of Indiabulls Housing and PNB stood at 86.2% and 81.5% of their MWPL on Monday. On October 16, BHEL saw its open interest reach 89.9% of its MWPL. 

All the above securities were retained on the list from Monday, October 16. GNFC and MCX were added to the list on Tuesday as the open interest of their F&O contracts reached 104.8% and 99.1%, respectively. 

The open interest for the F&O contracts of L&T Finance Holdings (L&TFH) declined below the 80% limit to 79.2%. It, hence, was exited from the list on Tuesday. 

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.