Under the futures and options (F&O) segment, six stocks were banned from trade on Tuesday, 17 December, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Granules India Ltd, Hindustan Copper, Manappuram Finance, National Aluminium, RBL Bank, and Steel Authority of India. 

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.

Manappuram Finance, Steel Authority of India, 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 96.1%, 92.2%, and 84.8%, respectively.

Granules India derivative contracts’ open interest is 97.9% of its MWPL on 17 December, compared to 92.7% for Hindustan Copper and 85.2% for National Aluminium.  

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 Metropolis Healthcare and PVR Inox declined below the 80% limit. Hence, it was 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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