Under the futures and options (F&O) segment, eight stocks were banned from trade on Wednesday, December 13, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Delta Corp, Hindustan Copper, India Cements, Indiabulls Housing Finance, National Aluminium Co, Steel Authority Of India Ltd (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. 

Delta Corp and Balrampur Chini were retained on the list as the open interest as a percentage of the MWPL of their F&O contracts stood at 86.3% and 117.8%, respectively, on December 12. The F&O contracts of India Cements witnessed their open interest at 97.4% of their MWPL on December 12. 

Indiabulls Housing and National Aluminium saw the open interest for their F&O contracts touch 87.1% and 86% of their respective MWPL, respectively. The open interest for the derivative contracts of Hindustan Copper stood at 107.4% of its MWPL at Tuesday’s closing time, while that of SAIL was 83.3%. 

All the above securities were retained on the list from Tuesday, December 12. ZEEL was added to the list on Wednesday as the open interest of its F&O contracts reached 100.4%.

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.