Under the futures and options (F&O) segment, eleven stocks were banned from trade on Monday, August 22, by the National Stock Exchange (NSE). 

The securities banned for the F&O trade are Chambal Fertilisers, Delta Corp, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), Hindustan Copper, India Cements, Indiabulls Housing Finance, Manappuram Finance, Metropolis Healthcare,  Punjab National Bank (PNB), Steel Authority of India (SAIL), and Zee Entertainment Enterprises Ltd (ZEEL). 

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 Chambal Fertilisers stood at 81.8% at the closing time on Monday, while that of Delta Corp was 85.2%. PNB and ZEEL saw the open interest for their F&O contracts touch 89.9% and 82.2%, respectively, on August 18. 

On Monday, GNFC and SAIL F&O contracts saw their open interest reach 91.4% and 84.3%. Indiabulls and India Cements were retained on the list as the open interest of their F&O contracts stood at 82.4% and 96.6%, respectively, on August 21. The combined open interest for the derivatives contracts of Hindustan Copper and Manappuram stood at 101.9% and 104.4%, respectively, on Monday. 

All the above securities were retained on the list from Monday, August 21. Metropolis was added to the list as the open interest of its F&O contracts touched 104.9% on Monday.

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 Granules India contracts declined below the 80% limit to 78.3%. It hence was exited from the list on Tuesday. 

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.