Under the futures and options (F&O) segment, eleven stocks were banned from trade on Friday, 9 August, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya Birla Capital Ltd, Aditya Birla Fashion and Retail,  Birlasoft Ltd, Gujarat Narmada Valley Fertilizers and Chemical Ltd, Hindustan Copper,  The India Cements Ltd, Indiamart Intermesh, LIC Housing Finance, Manappuram Finance, 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. 

Aditya Birla Capital, Aditya Birla Fashion, Birlasoft, and Gujarat Narmada Valley were retained on the list from Thursday as the open interest as a percentage of the MWPL of its F&O contracts stood at 85.7%, 96.1%, 87.7%, and 80.7%, respectively. Hindustan Copper derivative contracts’ open interest is 87.2% of its MWPL on 9 August, compared to 141.6% for India Cements, and 91.8% for Indiamart Intermesh. 

Furthermore, LIC Housing Finance, Manappuram Finance, and RBL Bank were also retained on the list as their open interest is 98.8%, 97.3%, and 87%, respectively. 

The above securities were retained on the list from Thursday, 8 August. Punjab National Bank was added to the list on Friday as the open interest of its F&O contracts reached 95.7%.

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.

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