Under the futures and options (F&O) segment, Thirteen stocks were banned from trade on Monday, 26 August, by the National Stock Exchange (NSE). The securities banned for the F&O trade Aarti Industries Ltd, Aditya Birla Fashion and Retail, Balrampur Chini Mills Ltd, Birlasoft Ltd, Chambal Fertilizers Ltd, Gujarat Narmada Valley Fertilizers and Chemicals, Granules India Ltd, Hindustan Copper Ltd, Indian Energy Exchange Ltd, The India Cements Ltd, National Aluminium, RBL Bank 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 Friday as the open interest as a percentage of the MWPL of its F&O contracts stood at 89.4%, 85.3%, and 96.7%, respectively. Sun TV Network derivative contracts’ open interest is 83% of its MWPL on 26 August, compared to 119.7% for India Cements, and 92.1% for the India Cements. 

Furthermore, Chambal Fertilizers, Gujarat Narmada Valley, and Indian Energy Exchange were also retained on the list as their open interest is 91.4%, 82%, and 88.5%, 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 80.2%, 87.1%, and 84.8%, respectively

The above securities were retained on the list from Friday, 23 August. Balrampur Chini Mills Ltd was added to the list on Monday as the open interest of their F&O contracts reached 97.2%. 

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 LIC Housing Finance Ltd and Piramal Enterprises Ltd declined below the 80% limit. Hence, it was removed from the list on Monday.

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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