Under the futures and options (F&O) segment, ten stocks were banned from trade on Monday, 20 January, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aarti Industries, Aditya Birla Fashion and Retail, Angel One Limited, Bandhan Bank, Can Fin Homes, Hindustan Copper, 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, Aarti Industries, and RBL Bank were retained on the list from Friday as the open interest as a percentage of the MWPL of its F&O contracts stood at 84.6%, 82% and 85.6%, respectively. Hindustan Copper derivative contracts’ open interest was 80.1% of its MWPL on 20 January, compared to 94.1% for L&T Finance and 85.2% 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 91.3%, 86%, and 92%, respectively.

The above securities were retained on the list from Friday, 17 January. Can Fin Homes was added to the list on Monday as the open interest of their F&O contracts reached 105.7%.

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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