Under the futures and options (F&O) segment, two stocks were banned from trade on Thursday, December 28, by the National Stock Exchange (NSE). The securities banned for the F&O trade are National Aluminium Co 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. 

RBL Bank and National Aluminium were retained on the list as the open interest as a percentage of the MWPL of their F&O contracts stood at 91% and 82.1%, respectively, on December 27. 

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 the F&O contracts of Balrampur Chini Mills, Delta Corp and Hindustan Copper declined below the 80% limit to 76.2%, 77.3% and 77.2%, respectively. Hence, they were exited from the list on Thursday. 

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.