Under the futures and options (F&O) segment, fifteen stocks were banned from trade on Tuesday, 13 August, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya Birla Capital Ltd, Aditya Birla Fashion and Retail,  Birlasoft Ltd, Gujarat Narmada Valley Fertilizers and Chemical Ltd, Hindustan Copper,  The India Cements Ltd, Indiamart Intermesh, LIC Housing Finance, Manappuram Finance, Punjab National Bank, RBL Bank, and Sun TV Network 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. 

Aditya Birla Capital, Aditya Birla Fashion, Birlasoft, and Bandhan 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 83.8%, 93.1%, 85%, and 94%, respectively. Hindustan Copper derivative contracts’ open interest is 84.1% of its MWPL on 13 August, compared to 139.9% for India Cements, 88.5% for Indiamart Intermesh, and 91.8% for Biocon. 

Furthermore, LIC Housing Finance, Manappuram Finance, and RBL Bank were also retained on the list as their open interest is 94.9%, 92.2%, and 86%, respectively. Granules India, Punjab National Bank, and Steel Authority of India were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 92.6%, 87.7%, and 94.1%, respectively.

The above securities were retained on the list from Monday, 12 August. Sun TV Network was added to the list on Thursday as the open interest of its F&O contracts reached 120.2%.

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 F&O contracts of Gujarat Narmada Valley declined below the 80% limit to 79.4%. Hence, it was removed from the list on Thursday.

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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