Under the futures and options (F&O) segment, twelve stocks were banned from trade on Wednesday, 23 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, Indian Energy Exchange Ltd, Indiamart Intermesh Ltd, L&T Finance, Manappuram Finance Ltd, Piramal Enterprises Ltd, Punjab National Bank, and RBL Bank 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 RBL Bank, were retained on the list from Tuesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 80%, 84.4%, and 108%, respectively. Piramal Enterprises’ derivative contracts’ open interest is 93.5% of its MWPL on 23 October, compared to 137.8% for IDFC Indiamart Intermesh and 88.4% for Bandhan Bank. 

Furthermore, Manappuram Finance, L&T Finance, and Punjab National Bank were also retained on the list as their open interest is 98.8%, 80%, and 80.2%, 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 87.7%, 91.5%, and 87.3%, 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 Granules India, Hindustan Copper, IDFC First Bank, and Steel Authority of India Ltd declined below the 80% limit. Hence, they were removed 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.

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