Under the futures and options (F&O) segment, eight stocks were banned from trade on Tuesday, 16 July by the National Stock Exchange (NSE). The securities banned for the F&O trade are The Aditya Birla Fashion, Chambal Fertilizers Ltd, GMR AIrports, Gujarat Narmada Valley Fertilizers and Chemicals Ltd, Hindustan Copper, The India Cements, Indus Towers, and RBL Bank. 

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. 

The Aditya Birla Fashion, Chambal Fertilizers, and GMR Airports were retained on the list from Monday as the open interest as a percentage of the MWPL of its F&O contracts stood at 80.1%, 84.7%, and 98.2%, respectively. Gujarat Narmada Valley derivative contracts’ open interest is 84.9% of its MWPL on 16 July, compared to 81.2% for India Cements, 85.4% for Indus Towers, and 88.9% for RBL Bank.

The above securities were retained on the list from Monday, 15 July. Hindustan Copper was added to the list on Tuesday as the open interest of their F&O contracts reached 96%. 

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 Balrampur Chini Mills Ltd, Bandhan Bank, India Energy Exchange, and Piramal Enterprises Ltd declined below the 80% limit to 79.4%, 79.5%, 79.5%, and 79.7%, respectively. Hence, it was 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.

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