Under the futures and options (F&O) segment, seven stocks were banned from trade on Wednesday, November 15, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Chambal Fertilisers, Delta Corp, Hindustan Copper, Indiabulls Housing Finance, Manappuram Finance, Steel Authority of India Ltd (SAIL), and Zee Entertainment Enterprises Ltd (ZEEL).
Derivative contracts for these stocks were banned as the open market interest for these securities exceeded 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 Chambal Fertilisers stood at 84.6% of its MWPL at the closing time on Friday, while that of Delta Corp was 88.6%. All the above securities were retained on the list from Friday, November 10.
Hindustan Copper, Indiabulls Housing Finance, Manappuram Finance, SAIL, and ZEEL were added to the list on Wednesday as the open interest of their F&O contracts reached 125.2%, 96.3%, 90.5%, 96.0% and 95.9%, 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 the F&O contracts of the Multi Commodity Exchange of India (MCX) and Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) declined below the 80% limit to 71% and 79.9%, respectively. Hence, they were exited from the list on Wednesday.
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.