Under the futures and options (F&O) segment, five stocks were banned from trade on Tuesday, 27 May, by the National Stock Exchange (NSE). Additionally, the securities banned for the F&O trade are Chambal Fertilizers, Hindustan Copper, Manappuram Finance, RBL Bank, and Titagarh Rail Systems. 

Derivative contracts of these stocks are 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.

Moreover, Manappuram Finance, RBL Bank, and Titagarh Rail Systems were retained on the list from Monday as the open interest as a percentage of the MWPL of its F&O contracts stood at 80.5%, 86.4%, and 93.3%, respectively.

Chambal Fertilizers derivative contracts’ open interest was 89.2% of its MWPL on 27 May, compared to 85.5% for Hindustan Copper. 

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. 

However, the open interest for F&O contracts of Dixon Technologies declined below the 80% limit. Hence, it was removed from the list on Tuesday

Not to mention, 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.

Feeling overwhelmed by the markets? Let Unicorn Signals be your guide. Our user-friendly app simplifies complex data and provides actionable trading signals. Download the app today and trade with confidence!