Under the futures and options (F&O) segment, seven stocks were banned from trade on Wednesday, 19 June by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills Ltd, Gujarat Narmada Valley, Hindustan Copper, The India Cements Ltd, Piramal Enterprises Ltd, Steel Authority of India, and Sun TV Network 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. 

Balrampur Chini Mills, Sun TV Network, and Steel Authority of India were retained on the list from Tuesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 106.4%, 87.4%, and 83.7%, respectively. The India Cements derivative contracts’ open interest is 88% of its MWPL on 19 June, compared to 93.1% for Hindustan Copper.

The above securities were retained on the list from Tuesday, 18 June. Gujarat Narmada Valley and Piramal Enterprises were added to the list on Wednesday as the open interest of their F&O contracts reached 102.2% and 106.7%, 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 open interest for F&O contracts of GMR Airports declined below the 80% limit to 72.2%. Hence, it was removed 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.