Under the futures and options (F&O) segment, eight stocks were banned from trade on Thursday, 12 June, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya Birla Fashion, Central Depository Services, Chambal Fertilizers, Hindustan Copper, Indian Energy Exchange, Indian Renewable Energy, 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, and Aditya Birla Fashion were retained on the list from Wednesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 109.2%, 100.1%, and 101.8%, respectively.

Chambal Fertilizers derivative contracts’ open interest was 92.9% of its MWPL on 12 June, compared to 83.2% for Hindustan Copper and 100.8% for RBL Bank. 

The above securities were retained on the list from Wednesday, 11 June. Central Depository Services and Indian Energy Exchange were added to the list on Thursday as the open interest of their F&O contracts reached 98.5% and 101%, 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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