Under the futures and options (F&O) segment, five stocks were banned from trade on Wednesday, 25 September by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya Birla Fashion and Retail Ltd, Granules India Ltd, Hindustan Copper Ltd, Vodafone Idea Ltd, and Indian Energy Exchange.  

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. 

Aditya Birla Fashion, Granules India, and Vodafone Idea were retained on the list from Tuesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 93.7%, 136% and 93.6%, respectively. 

The above securities were retained on the list from Tuesday, 24 September. Hindustan Copper Ltd and Indian Energy Exchange were added to the list on Wednesday as the open interest of their F&O contracts reached 103.8% and 111.4%, 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 F&O contracts of Aarti Industries Ltd, Biocon Ltd, Chambal Fertilizers Ltd, Gujarat Narmada Valley Fertilizers and Chemicals Ltd, LIC Housing Finance Ltd, National Aluminium Ltd,  Oracle Financial Services, Punjab National Bank, and Steel Authority of India Ltd declined below the 80% limit. Hence, it was 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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