Under the futures and options (F&O) segment, sixteen stocks were banned from trade on Wednesday, 21 August, by the National Stock Exchange (NSE). The securities banned for the F&O trade Aarti Industries Ltd, Aditya Birla Fashion and Retail, Balrampur Chini Mills Ltd, Bandhan Bank, Birlasoft Ltd, Gujarat Narmada Valley Fertilizers and Chemicals, Granules India Ltd, Hindustan Copper Ltd, The India Cements Ltd, LIC Housing Finance Ltd, Manappuram Finance Ltd, National Aluminium, Piramal Enterprises Ltd, RBL Bank, Steel Authority of India, and Sun TV Network Ltd. 

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, Birlasoft, and Bandhan Bank were retained on the list from Tuesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 102%, 88.1%, 109%, and 83.9%, respectively. Sun TV Network derivative contracts’ open interest is 89.6% of its MWPL on 21 August, compared to 127.7% for India Cements, 83.4% for Bandhan Bank, and 92% for Gujarat Narmada Valley. 

Furthermore, LIC Housing Finance, Manappuram Finance, Piramal Enterprises, and RBL Bank were also retained on the list as their open interest is 86.7%, 81.6%, 86% and 81.4%, respectively. Granules India, Hindustan Copper, and Steel Authority of India were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 85.6%, 93.9%, and 81%, respectively

The above securities were retained on the list from Tuesday, 20 August. National Aluminium was added to the list on Wednesday as the open interest of their F&O contracts reached 97.6%. 

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 open interest for F&O contracts of Chambal Fertilizers, Indiamart Intermesh, NMDC Ltd, and Punjab National Bank declined below the 80% limit to %. Hence, it was removed from the list on Wednesday

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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