Under the futures and options (F&O) segment, eight stocks were banned from trade on Friday, 13 September by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aarti Industries Ltd, Aditya Birla Fashion and Retail Ltd, Balrampur Chini Mills Ltd, Bandhan Bank Ltd, Chambal Fertilizers Ltd, Granules India Ltd, Hindustan Copper Ltd, and RBL Bank.  

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. 

Aditya Birla Fashion, Balrampur Chini Mills, Aarti Industries Ltd, and Hindustan Copper were retained on the list from Thursday as the open interest as a percentage of the MWPL of its F&O contracts stood at 81%, 87.9%, 99%, and 85.1%, respectively.

Bandhan Bank’s derivative contracts’ open interest is 86% of its MWPL on 13 September, compared to 86% for RBL Bank and 84.5% for Chambal Fertilizers. 

The above securities were retained on the list from Thursday, 12 September. Granules India Ltd was added to the list on Friday as the open interest of their F&O contracts reached 238.3%.

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.

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