Under the futures and options (F&O) segment, eight stocks were banned from trade on Friday, November 17, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Chambal Fertilisers Ltd, Delta Corp Limited, Hindustan Copper Ltd, India Cements Limited, Manappuram Finance Ltd, Multi Commodity Exchange of India (MCX), Steel Authority of India Ltd (SAIL), and Zee Entertainment Enterprises Ltd (ZEEL). 

Derivative contracts for these stocks were banned as the open market interest for these securities exceeded 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. 

At Thursday’s closing time, the open interest in ZEEL’s derivative contracts stood at 92.4% of its MWPL, while that of Delta Corp was 85.2%. The open interest in SAIL’s derivative contracts stood at 83.4% of its MWPL. 

Hindustan Copper and MCX were retained on the list as the open interest as a percentage of the MWPL of their F&O contracts stood at 105.1% and 100.3%, respectively, on November 16. All the above securities were retained on the list from Thursday, November 16.

Chambal Fertilisers, India Cements and Manappuram Finance were added to the list on Friday as the open interest of their F&O contracts reached 104.2%, 106.8%, and 105.4%, respectively. 

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 F&O contracts of Indiabulls Housing Finance declined below the 80% limit to 79.3%, so it was removed from the list on Friday. 

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.