Under the futures and options (F&O) segment, seven stocks were banned from trade on Friday, July 21, by the National Stock Exchange (NSE). 

The securities banned for F&O trade are L&T Housing Finance (L&TFH), Indiabulls Housing Finance, Manappuram Finance, Delta Corp, RBL Bank, Punjab National Bank and Balrampur Chini Mills.

Derivative contracts of these stocks were banned as they have 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 MWPL of Delta Corp stood at 114.5% on Thursday, while that of Indiabulls was 88.7%. L&TFH’s open interest reached 84.3% of the MWPL. F&O Contracts of RBL Bank saw their MWPL at 83%; for Manappuram, the same stood at 83.2%. 

All of the above securities were also banned on Thursday, July 20. Balrampur Chini Mills and Punjab National Bank were the latest to enter the ban, as the MWPL of their F&O touched 104.7% and 97% on Thursday.

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.