Under the futures and options (F&O) segment, four stocks were banned from trade on Monday, August 7, by the National Stock Exchange (NSE). 

The securities banned for F&O trade are Hindustan Copper, Indiabulls Housing Finance, Gujarat State Fertilizers & Chemicals (GSFC) and Piramal Enterprises.

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. 

The open interest for the derivative contracts of GSFC stood at 87.7% at the closing time on Friday, while that of Hindustan Copper was 96.1%. Piramal Enterprises’ open interest reached 101.8% of the MWPL. 

All the above securities were retained on the list from Wednesday, August 2. Indiabulls Housing was added to the list as the open interest of its F&O contracts touched 83.1% on Friday.

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.

All the above securities and Indiabulls Housing Finance were also on the list on Thursday, August 3. 

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.