Under the futures and options (F&O) segment, nine stocks were banned from trade on Tuesday, 8 October by the National Stock Exchange (NSE). The securities banned for the F&O trade are Bandhan Bank Ltd, Birlasoft Ltd, Gujarat Narmada Valley Fertilizers and Chemicals Ltd, Granules India Ltd, Hindustan Copper Ltd, IDFC First Bank Ltd, Manappuram Finance Ltd, Punjab National Bank Ltd, and RBL Bank Ltd. 

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. 

Bandhan Bank Ltd, Birlasoft, Gujarat Narmada Valley, and RBL Bank Ltd were retained on the list from Monday as the open interest as a percentage of the MWPL of its F&O contracts stood at 85.5%, 85.9%, 106.2%, and 92.5%, respectively. 

Hindustan Copper derivative contracts’ open interest is 91.6% of its MWPL on 8 October, compared to 99.1% for Granules India and 91.8% for Manappuram Finance. 

The above securities were retained on the list from Friday, 7 October. IDFC First Bank and Punjab National Bank were added to the list on Tuesday as the open interest of their F&O contracts reached 95.6% and 98.1%, respectively.

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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