Under the futures and options (F&O) segment, eleven stocks were banned from trade on Thursday, 7 August, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya Birla Capital Ltd, Birlasoft Ltd, Chambal Fertilizers, Gujarat Narmada Valley Fertilizers and Chemical Ltd, Granules India Ltd, Hindustan Copper,  The India Cements Ltd, Indiamart Intermesh, LIC Housing Finance, Manappuram Finance, 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 India Cements, Birlasoft, and Granules India were retained on the list from Tuesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 144%, 90.3%, and 80.8%, respectively. Gujarat Narmada Valley derivative contracts’ open interest is 82.2% of its MWPL on 7 August, compared to 96.9% for Indiamart Intermesh, and 88.6% for RBL Bank. . 

Furthermore, Aditya Birla Capital, Hindustan Copper, and Chambal Fertilizers were also retained on the list as their open interest is 89.3%, 91.8%, and 82.7%, respectively. 

The above securities were retained on the list from Tuesday, 6 August. LIC Housing Finance and Manappuram Finance were added to the list on Wednesday as the open interest of its F&O contracts reached 110.2% and 100.9%, 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 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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