Under the futures and options (F&O) segment, twelve stocks were banned from trade on Tuesday, 24 September, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aarti Industries Ltd, Aditya Birla Fashion and Retail Ltd, Biocon Ltd, Chambal Fertilizers Ltd, Gujarat Narmada Valley Fertilizers and Chemicals Ltd, Granules India Ltd, Vodafone Idea Ltd, LIC Housing Finance Ltd, National Aluminium Ltd,  Oracle Financial Services, Punjab National Bank, and Steel Authority of India 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. 

Aarti Industries Ltd, Oracle Financial Services, Steel Authority of India, and Biocon were retained on the list from Monday as the open interest as a percentage of the MWPL of its F&O contracts stood at 80.7%, 85.4%, 83% and 85.8%, respectively. Chambal Fertilizers, Gujarat Narmada Valley, and Granules India were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 83.2%, 82.7%, and 148.9%, respectively.

LIC Housing Finance derivative contracts’ open interest is 80.9% of its MWPL on 24 September, compared to 83.1% for Punjab National Bank and 82.3% for National Aluminium.

The above securities were retained on the list from Monday, 23 September. Aditya Birla Fashion and Vodafone Idea were added to the list on Tuesday as the open interest in their F&O contracts reached 103.7% and 97%, 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 to 79%. 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 security ban.

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