Under the futures and options (F&O) segment, seven stocks were banned from trade on Tuesday, December 19, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Hindustan Copper, India Cements, Manappuram Finance, National Aluminium Co Ltd, Steel Authority Of India Ltd (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. 

Manappuram Finance and Balrampur Chini were retained on the list as the open interest as a percentage of the MWPL of their F&O contracts stood at 93.1% and 104.9%, respectively, on December 18. 

The open interest for the derivative contracts of Hindustan Copper stood at 80.6% of its MWPL at Monday’s closing time, while that of India Cements was 83.6%. SAIL and ZEEL saw the open interest for their F&O contracts touch 96.1% and 83.7% of their respective MWPLs, respectively. 

All the above securities were retained on the list from Monday, December 18. National Aluminium was added to the list on Tuesday as the open interest of its F&O contracts reached 101.5%.

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 Delta Corp’s F&O contracts declined below the 80% limit to 79.9%. Hence, it 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.