Under the futures and options (F&O) segment, ten stocks were banned from trade on Thursday, 11 July by the National Stock Exchange (NSE). The securities banned for the F&O trade are The Aditya Birla Fashion, Balrampur Chini Mills Ltd, Bandhan Bank, Chambal Fertilizers Ltd, Gujarat Narmada Valley Fertilizers and Chemicals Ltd, India Energy Exchange, The India Cements, Indus Towers, Piramal Enterprises 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. 

The India Cements, Bandhan Bank, and Indus Towers were retained on the list from Wednesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 98.6%, 83%, and 91%, respectively.  Aditya Birla Fashion derivative contracts’ open interest is 84.4% of its MWPL on 11 July, compared to 86.7% for Piramal Enterprises, and 97.3% for Balrampur Chini Mills.

Furthermore, Gujarat Narmada Valley, Indian Energy Exchange, and Chambal Fertilizers were also retained on the list as their open interest is 91.1%, 85.6%, and 91.5%, respectively. 

The above securities were retained on the list from Wednesday, 10 July. RBL Bank was added to the list on Wednesday as the open interest of their F&O contracts reached 100.9%. 

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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