Under the futures and options (F&O) segment, five stocks were banned from trade on Thursday, August 10, by the National Stock Exchange (NSE). 

The securities banned for the F&O trade are Balrampur Chini Mills, Chambal Fertilisers and Chemicals, Delta Corp, Hindustan Copper, and Indiabulls Housing Finance.

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 open interest for the derivative contracts of Delta Corp stood at 96.4% at the closing time on Wednesday, while that of Hindustan Copper was 89.9%. Balrampur Chini and Chambal Fertilisers saw the open interest for their F&O contracts touch 87.8% and 108.7%, respectively, on August 9. Indiabulls F&O contracts saw their open interest reach 93.8% on Wednesday. All the above securities were retained on the list from Wednesday, August 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 open interest for the contracts of India Cements declined below the 80% limit to 71.2%. It hence was exited 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.