Under the futures and options (F&O) segment, ten stocks were banned from trade on Monday, 16 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 Energy Exchange, 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, Indian Renewable Energy, Central Depository Services, and Aditya Birla Fashion were retained on the list from Friday as the open interest as a percentage of the MWPL of its F&O contracts stood at 98.9%, 86.3%, 86.4%, and 94.6%, respectively.

Chambal Fertilizers derivative contracts’ open interest was 88.5% of its MWPL on 16 June, compared to 94.2% for Birlasoft, 81.2% for Indian Energy Exchange, and 95.5% for RBL Bank. 

The above securities were retained on the list from Friday, 13 June. Housing and Urban Development Corporation and Manappuram Finance were added to the list on Monday as the open interest of their F&O contracts reached 96.7% and 96.3%, 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 Hindustan Copper declined below the 80% limit. Hence, it was removed from the list on Monday

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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