Under the futures and options (F&O) segment, nine stocks were banned from trade on Wednesday, 18 June, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya Birla Fashion, Birlasoft, Central Depository Services, Chambal Fertilizers, Housing and Urban Development Corporation, Indian Renewable Energy, Manappuram Finance, RBL Bank, and Titagarh Rail Systems. 

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.

Titagarh Rail Systems, Central Depository Services, and Aditya Birla Fashion were retained on the list from Tuesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 94.2%, 83.5%, and 90.9%, respectively.

Chambal Fertilizers derivative contracts’ open interest was 84.7% of its MWPL on 18 June, compared to 84.2% for Birlasoft, 80.6% for Indian Renewable Energy. 

Furthermore, Housing and Urban Development, Manappuram Finance, and RBL Bank were also retained on the list as their open interest is 88%, 84.4%, and 93.1%, 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 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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