Under the futures and options (F&O) segment, four stocks were banned from trade on Wednesday, November 29, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Bharat Heavy Electricals Limited (BHEL), Granules India, and Indiabulls Housing Finance. 

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. 

BHEL and Indiabulls Housing were retained on the list as the open interest as a percentage of the MWPL of their F&O contracts stood at 80.1% and 81.8%, respectively, on November 28. 

The open interest for the derivative contracts of Balrampur Chini stood at 80.6% of its MWPL at Tuesday’s closing time, while that of Granules India was 80.8%. All the above securities were retained on the list from Tuesday, November 28. 

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 Hindustan Copper Ltd, Hindustan Petroleum Corp, and Zee Entertainment Enterprises Ltd (ZEEL) declined below the 80% limit. Hence, they 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.