Under the futures and options (F&O) segment, twelve stocks were banned from trade on Thursday, 22 August, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aarti Industries Ltd, Aditya Birla Fashion and Retail, Balrampur Chini Mills Ltd, Birlasoft Ltd, Gujarat Narmada Valley Fertilizers and Chemicals, Granules India Ltd, Hindustan Copper Ltd, The India Cements Ltd, LIC Housing Finance Ltd, National Aluminium, Piramal Enterprises Ltd, 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. 

Aarti Industries, Aditya Birla Fashion, and Birlasoft, were retained on the list from Wednesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 97%, 87.7%, and 105.8%, respectively. Sun TV Network derivative contracts’ open interest is 86.6% of its MWPL on 22 August, compared to 126.3% for India Cements, and 81.2% for Bandhan Bank. 

Furthermore, LIC Housing Finance, Gujarat Narmada Valley, and Piramal Enterprises were also retained on the list as their open interest is 84.6%, 87.7%, and 84.4%, respectively. Granules India, Hindustan Copper, and National Aluminium were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 83.5%, 91.8%, and 92.6%, 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 Bandhan Bank, Manappuram Finance Ltd, RBL Bank, and Steel Authority of India declined below the 80% limit. 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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