Under the futures and options (F&O) segment, nine stocks were banned from trade on Friday, 25 October by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aarti Industries Ltd, Bandhan Bank, Escorts Kubota Ltd, Indian Energy Exchange Ltd, Indiamart Intermesh Ltd, Manappuram Finance Ltd, NMDC Ltd, Piramal Enterprises Ltd, and RBL Bank 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. 

Aarti Industries, Bandhan Bank, and Indian Energy Exchange were retained on the list from Thursday as the open interest as a percentage of the MWPL of its F&O contracts stood at 86.5%, 86.2%, and 83.2%, respectively. Indiamart Intermesh derivative contracts’ open interest is 123.2% of its MWPL on 25 October, compared to 90.8% for NMDC.

Furthermore, Manappuram Finance, Piramal Enterprises, and RBL Bank were also retained on the list as their open interest is 92%, 83.8%, and 101.6%, respectively. 

The above securities were retained on the list from Thursday, 24 October. Escorts Kubota was added to the list on Friday as the open interest of their F&O contracts reached 110.8%.

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 F&O contracts of Birlasoft Ltd and Gujarat Narmada Valley Fertilizers and Chemicals declined below the 80% limit. Hence, they were removed from the list on Friday.

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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