Under the futures and options (F&O) segment, eight stocks were banned from trade on Tuesday, 21 January, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya Birla Fashion and Retail, Angel One Limited, Bandhan Bank, Can Fin Homes, Kalyan Jewellers India, L&T Finance, Manappuram Finance, and RBL Bank. 

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.

Bandhan Bank, Can Fin Homes, and RBL 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 84.3%, 91.1% and 82.7%, respectively. L&T Finance derivative contracts’ open interest was 92.9% of its MWPL on 21 January, compared to 82.8% for Angel One. 

Aditya Birla Fashion, Kalyan Jewellers, and Manappuram Finance were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 87.5%, 84.1%, and 90.7%, 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 open interest for F&O contracts of Aarti Industries and Hindustan Copper declined below the 80% limit. Hence, it was removed from the list on Tuesday.

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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