Under the futures and options (F&O) segment, five stocks were banned from trade on Friday, 10 January, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Bandhan Bank, Hindustan Copper, L&T 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.

Bandhan Bank, Manappuram Finance and RBL Bank were retained on the list from Thursday as the open interest as a percentage of the MWPL of its F&O contracts stood at 95.6%, 85.1% and 91.8%, respectively. Hindustan Copper derivative contracts’ open interest is 95.5% of its MWPL on 10 January, compared to 101.4% for L&T Finance.

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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