Under the futures and options (F&O) segment, ten stocks were banned from trade on Thursday, 19 September, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aarti Industries Ltd, Balrampur Chini Mills Ltd, Biocon Ltd, Birlasoft Ltd, Gujarat Narmada Valley Fertilizers and Chemicals Ltd, Granules India Ltd, LIC Housing Finance Ltd, Oracle Financial Services, Punjab National Bank, 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. 

Aarti Industries Ltd, Balrampur Chini Mills, and Biocon were retained on the list from Wednesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 91%, 82.5%, and 101.9%, respectively. Birlasoft, Gujarat Narmada Valley, and Granules India were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 86.5%, 97.4%, and 181.5%, respectively.

LIC Housing Finance derivative contracts’ open interest is 98% of its MWPL on 19 September, compared to 95.5% for Punjab National Bank and 82.6% for RBL Bank

The above securities were retained on the list from Wednesday, 18 September. Oracle Financial Services was added to the list on Thursday as the open interest of their F&O contracts reached 133.2%.

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 Hindustan Copper Ltd declined below the 80% limit to 79.7%. Hence, it was removed from the list on Thursday.

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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