Under the futures and options (F&O) segment, six stocks were banned from trade on Thursday, 12 December, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Granules India Ltd, Hindustan Copper, Manappuram Finance, Metropolis Healthcare, PVR Inox, and RBL Bank.

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.

Metropolis Healthcare, PVR Inox, and RBL Bank were retained on the list from Wednesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 91.9%, 84.3%, and 88%, respectively.

Granules India derivative contracts’ open interest is 102.6% of its MWPL on 12 December, compared to 80.3% for Manappuram Finance. 

The above securities were retained on the list from Wednesday, 11 December. Hindustan Copper was added to the list on Thursday as the open interest of their F&O contracts reached 102.2%.

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 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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