Under the futures and options (F&O) segment, sixteen stocks were banned from trade on Tuesday, 22 October, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aarti Industries Ltd, Bandhan Bank, Birlasoft Ltd, Chambal Fertilizers, Gujarat Narmada Valley Fertilizers and Chemicals, Granules India, Hindustan Copper, IDFC First Bank, Indian Energy Exchange Ltd, Indiamart Intermesh Ltd, L&T Finance, Manappuram Finance Ltd, Piramal Enterprises Ltd, Punjab National Bank, RBL Bank Ltd, and Steel Authority of India Ltd., and 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. 

Chambal Fertilizers, Gujarat Narmada Valley, and Granules India, were retained on the list from Monday as the open interest as a percentage of the MWPL of its F&O contracts stood at 93.4%, 84.1%, 87.2%, and 81.3%, respectively. Hindustan Copper derivative contracts’ open interest is 82.4% of its MWPL on 22 October, compared to 80.8% for IDFC First Bank and 92% for Bandhan Bank. 

Furthermore, the Steel Authority of India, L&T Finance, and Punjab National Bank were also retained on the list as their open interest is 81%, 85.5%, and 83.6%, respectively. Indian Energy Exchange, Aarti Industries, and Birlasoft were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 91.8%, 96.3%, and 93.4%, respectively.

The above securities were retained on the list from Monday, 21 October. Indiamart Intermesh, Manappuram Finance, RBL Bank, and Piramal Enterprises were added to the list on Tuesday as the open interest of their F&O contracts reached 163.6%, 105.5%, 118%, and 98.7%, 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 F&O contracts of National Aluminium Ltd and Tata Chemicals declined below the 80% limit. Hence, they were removed from the list on Tuesday.

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.

The future of investing is here!
Unicorn Signals leverages advanced AI technology to provide you with powerful market predictions and actionable stock scans. Download the app todayand 10x your trading & investing journey!