Under the futures and options (F&O) segment, five stocks were banned from trade on Thursday, 14 November, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aarti Industries Ltd, Aditya Birla Fashion and Retail Ltd, Gujarat Narmada Valley Fertilizers, Granules India Ltd, and Hindustan Copper. 

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.

Aarti Industries, Aditya Birla Fashion, Hindustan Copper, and Granules India were retained on the list from Wednesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 103.1%, 83.4%, 86.6% and 88.7%, respectively.

The above securities were retained on the list from Wednesday, 13 November. Gujarat Narmada Valley was added to the list on Thursday as the open interest of their F&O contracts reached 121.8%.

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 Manappuram Finance Ltd declined below the 80% limit. Hence, they were removed from the list on Thursday.

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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