Under the futures and options (F&O) segment, eleven stocks were banned from trade on Friday, 19 July by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Bandhan Bank, GMR AIrports, Gujarat Narmada Valley Fertilizers and Chemicals Ltd, Hindustan Aeronautics, Hindustan Copper, The India Cements Ltd, Piramal Enterprises, RBL Bank, Steel Authority of India, and Vedanta 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, GMR Airports, and Gujarat Narmada Valley were retained on the list from Thursday as the open interest as a percentage of the MWPL of its F&O contracts stood at 90.6%, 88.1%, and 81.1%, respectively. Hindustan Copper derivative contracts’ open interest is 89.3% of its MWPL on 19 July, compared to 84.9% for RBL Bank.

Furthermore, Piramal Enterprises and Vedanta Ltd were also retained on the list as their open interest is 89.3% and 88.7%, respectively. 

The above securities were retained on the list from Thursday, 18 July. Bandhan Bank, Hindustan Aeronautics, The India Cements Ltd, and Steel Authority of India were added to the list on Friday as the open interest of their F&O contracts reached 95.9%, 102.4%, 150.1%, and 101.4%, 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 Chambal Fertilizers Ltd declined below the 80% limit to 79%, 77.3%, and 78.4%, respectively. Hence, it was removed from the list on Thursday.

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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