Under the futures and options (F&O) segment, nineteen stocks were banned from trade on Friday, 16 August, by the National Stock Exchange (NSE). The securities banned for the F&O trade Aarti Industries Ltd, Aditya Birla Capital Ltd, Aditya Birla Fashion and Retail, Bandhan Bank, Biocon Ltd, Birlasoft Ltd, Chambal Fertilizers, Gujarat Narmada Valley Fertilizers and Chemicals, Granules India Ltd, The India Cements Ltd, Indiamart Intermesh, LIC Housing Finance Ltd, Manappuram Finance Ltd, NMDC Ltd, Piramal Enterprises Ltd, Punjab National Bank, 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. 

Aditya Birla Capital, Aditya Birla Fashion, Birlasoft, and Bandhan Bank were retained on the list from Wednesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 80.8%, 90.3%, 81.6%, and 88.4%, respectively. Sun TV Network derivative contracts’ open interest is 97% of its MWPL on 16 August, compared to 133.2% for India Cements, 84.6% for Indiamart Intermesh, and 83.5% for Biocon. 

Furthermore, LIC Housing Finance, Manappuram Finance, Aarti Industries, and RBL Bank were also retained on the list as their open interest is 92.2%, 86%, 119.4%, and 83.6%, respectively. Granules India, Punjab National Bank, Chambal Fertilizers, and Steel Authority of India were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 88.7%, 83.9%, 89.2%, and 87.3%, respectively.

The above securities were retained on the list from Wednesday, 14 August. Gujarat Narmada Valley, NMDC Ltd, and Piramal Enterprises Ltd were added to the list on Friday as the open interest of their F&O contracts reached 107%, 96.5%, and 124.2%, 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.

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