Under the futures and options (F&O) segment, five stocks were banned from trade on Thursday, September 7, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, BHEL, Delta Corp, Hindustan Copper, India Cements and Indiabulls Housing Finance, Manappuram Finance and Steel Authority of India Ltd (SAIL). 

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 open interest for the derivative contracts of BHEL stood at 85.4% of its MWPL at the closing time on Wednesday, while that of Balrampur Chini was 93.4%. Hindustan Copper saw the open interest for its F&O contracts touch 93.2%. 

On September 6, Delta Corp saw its open interest reach 97.8% of its MWPL. The combined open interest for the derivatives contracts of Indiabulls and India Cements stood at 105.8% and 96.8%, respectively, of their MWPL on Wednesday. 

All the above securities were retained on the list from Wednesday, September 6. Manappuram and SAIL were added to the list on Thursday as the open interest of their F&O contracts touched 99.1% and 101.5%, 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.