Under the futures and options (F&O) segment, four stocks were banned from trade on Monday, 9 December, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Granules India Ltd, Manappuram Finance, PVR Inox, 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.

Granules India derivative contracts’ open interest is 110% of its MWPL on 9 December, compared to 88% for Manappuram Finance.

The above securities were retained on the list from Friday, 6 December. PVR Inox and RBL Bank were added to the list on Monday as the open interest of their F&O contracts reached 99.4% and 103.7%, 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 open interest for F&O contracts of RBL Bank declined below the 80% limit. Hence, it was removed from the list on Friday.

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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