Under the futures and options (F&O) segment, one stock was banned from trade on Wednesday, 26 March, by the National Stock Exchange (NSE). The securities banned for the F&O trade are IndusInd 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.
IndusInd Bank was retained on the list from Tuesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 81.6%.
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 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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