Under the futures and options (F&O) segment, five stocks were banned from trade on Wednesday, January 24, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Indian Railway Catering and Tourism Corporation (IRCTC), National Aluminium Co, Oracle Financial Services Software and RBL Bank.

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. 

Balrampur Chini was retained on the list as the open interest as a percentage of the MWPL of its F&O contracts stood at 80% on January 23. IRCTC and RBL Bank saw the open interest for their F&O contracts touch 80.5% and 81.6% of their respective MWPLs, respectively. 

The open interest for Oracle Financial Services’ derivative contracts stood at 82.5% of its MWPL at Tuesday’s closing time, while that of National Aluminium was 85.8%. All the above securities were retained on the list from Tuesday, January 23. 

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 the F&O contracts of Aditya Birla Fashion and Retail, Delta Corp, Indian Energy Exchange (IEX), Polycab India, Steel Authority of India Ltd (SAIL), and Zee Entertainment Enterprises Ltd (ZEEL) declined below the 80% limit. Hence, they were exited 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.