Under the futures and options (F&O) segment, ten stocks were banned from trade on Friday, August 18, by the National Stock Exchange (NSE). 

The securities banned for the F&O trade are Chambal Fertilisers, Delta Corp, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), Granules India, Hindustan Copper, India Cements, Indiabulls Housing Finance, Punjab National Bank (PNB), SAIL, and Zee Entertainment Enterprises Ltd (ZEEL). 

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 Chambal Fertilisers stood at 86.2% at the closing time on Thursday, while that of Delta Corp was 88.3%. Indiabulls and ZEEL saw the open interest for their F&O contracts touch 83.4% and 85.8%, respectively, on August 17. 

On Thursday, GNFC F&O contracts saw their open interest reach 95.5%. Granules India and India Cements were retained on the list as the open interest of their F&O contracts stood at 85.6% and 101.1%, respectively, on Thursday.

All the above securities were retained on the list from Thursday, August 17. PNB was added to the list as the open interest of its F&O contracts touched 101.8% 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 open interest for Balrampur Chini Mills and Manappuram Finance contracts declined below the 80% limit to 79.6% and .77.6, respectively. They hence were exited from the list on Wednesday. 

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.