Under the futures and options (F&O) segment, eleven stocks were banned from trade on Thursday, August 17, by the National Stock Exchange (NSE). 

The securities banned for the F&O trade are Balrampur Chini Mills, Chambal Fertilisers, Delta Corp, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), Granules India, Hindustan Copper, India Cements, Indiabulls Housing Finance, Manappuram Finance, SAIL, and Zee Entertainment Enterprises Ltd (ZEEL). 

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 Chambal Fertilisers stood at 89% at the closing time on Wednesday, while that of Delta Corp was 89.9%. Indiabulls and ZEEL saw the open interest for their F&O contracts touch 85% and 87.5%, respectively, on August 16. 

On Wednesday, Manappuram Finance and GNFC F&O contracts saw their open interest reach 82.8% and 96.8%, respectively. Granules India, India Cements and Balrampur Chini were retained on the list as the open interest of their F&O contracts stood at 87.8%, 106.2% and 80.8%, respectively, on Wednesday.

All the above securities were retained on the list from Wednesday, August 16. SAIL and Hindustan Copper were added to the list as the open interest of their F&O contracts touched 95.5% and 116.9% on Wednesday.

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 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.