Under the futures and options (F&O) segment, five stocks were banned from trade on Tuesday, September 5, by the National Stock Exchange (NSE). The securities banned for the F&O trade are BHEL, Indiabulls Housing Finance, Hindustan Copper, India Cements and Balrampur Chini Mills.

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. 

Indiabulls Housing was retained on the list from Monday, September 4, as the open interest for its derivative contracts stood at 112.6%.

On Tuesday, BHEL, Hindustan Copper, India Cements and Balrampur Chini were added to the list as the open interest of its F&O contracts crossed 95% of the MWPL.

The open interest for the derivative contracts of Balrampur Chini stood at 125.3% at the closing time on Monday, while that of BHEL was 105.8%. Hindustan Copper saw the open interest for its F&O contracts touch 102.1% on September 4. India Cements’ F&O contracts’ open interest stood at 104% on Monday. 

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.