Under the futures and options (F&O) segment, five stocks were banned from trade on Tuesday, July 25, by the National Stock Exchange (NSE). 

The securities banned for F&O trade are Indiabulls Housing Finance, Canara Bank, Delta Corp, RBL Bank, and Punjab National Bank (PNB).

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. 

The open interest for the derivative contracts of PNB stood at 80.9% at the closing time on Monday, while that of Indiabulls Housing was 84.1%. Delta Corp’s open interest reached 104.7% of the MWPL. 

All the above securities were retained on the list from Monday, July 24. Canara Bank and RBL Bank were the latest to enter the ban, as the open interest of their F&O contracts touched 99.1% and 110% on Thursday.

The ban will be lifted once the position falls below 80%. Traders will get penalized for buying or selling these securities. They will be available for trading in the cash market.

On Tuesday, Manappuram Finance, L&T Housing Finance, and Balrampur Chini Mills exited the F&O ban list as their open interest dropped to 78.1%, 75.3%, and 78%, respectively. 

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.