Under the futures and options (F&O) segment, eight stocks were banned from trade on Tuesday, 29 October by the National Stock Exchange (NSE). The securities banned for the F&O trade are Dixon Technologies (India), Escorts Kubota Ltd, IDFC First Bank Ltd, Indiamart Intermesh Ltd, L&T Finance Ltd, Manappuram Finance Ltd, Punjab National Bank, 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. 

Dixon Technologies, L&T Finance, Escorts Kabuta, and RBL Bank were retained on the list from Monday as the open interest as a percentage of the MWPL of its F&O contracts stood at 84.1%, 91%, 86.9%, and 93.1%, respectively. Indiamart Intermesh derivative contracts’ open interest is 102.2% of its MWPL on 29 October, compared to 94.6% for IDFC First Bank, and 86.7% for Manappuram Finance. 

The above securities were retained on the list from Monday, 28 October. Punjab National Bank was added to the list on Tuesday as the open interest of their F&O contracts reached 98.9%.

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 Aarti Industries Ltd, Bandhan Bank, and NMDC declined below the 80% limit. Hence, they were removed from the list on Tuesday.

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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