Under the futures and options (F&O) segment, six stocks were banned from trade on Wednesday, August 9, by the National Stock Exchange (NSE). 

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

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 Balrampur Chini Mills stood at 90.4% at the closing time on Tuesday, while that of Hindustan Copper was 91.2%. Indiabulls F&O contracts saw their open interest reach 95.9% on August 8. India Cement’s open interest reached 90.7% of the MWPL. 

All the above securities were retained on the list from Tuesday, August 8. Chambal Fertilizers and Delta Corp Ltd were added to the list as the open interest of their F&O contracts touched 119.5% and 102.8%, respectively, 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 open interest for the contracts of Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) and Piramal Enterprises declined below the 80% limit to 78.9% and 78.5%, respectively. They hence were exited from the list on Wednesday. 

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.