Under the futures and options (F&O) segment, eleven stocks were banned from trade on Friday, August 25, by the National Stock Exchange (NSE). 

The securities banned for the F&O trade are BHEL, Delta Corp, GMR Airports Infra, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), Hindustan Copper, India Cements, Indiabulls Housing Finance, Manappuram Finance, Metropolis Healthcare, Punjab National Bank (PNB), 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. 

The open interest for the derivative contracts of BHEL stood at 92.5% at the closing time on Thursday, while that of Delta Corp was 80.4%. PNB saw the open interest for its F&O contracts touch 80.3% on August 24. 

On Thursday, GNFC and Metropolis F&O contracts saw their open interest reach 81.4% and 83.6%, respectively. Indiabulls and India Cements were retained on the list as the open interest of their F&O contracts stood at 80.8% and 92.6%, respectively, on August 24. The combined open interest for the derivatives contracts of Hindustan Copper and Manappuram stood at 92% and 94.5%, respectively, on Thursday. 

All the above securities were retained on the list from Thursday, August 24. GMR Infra and RBL Bank were added to the list on Friday as the open interest of its F&O contracts touched 108.2% and 101.2%.

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 Escorts Kubota and Sun TV Network contracts declined below the 80% limit to 73.2% and 77.5%, respectively. They, hence, were exited 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.