Under the futures and options (F&O) segment, ten stocks were banned from trade on Wednesday, September 13, by the National Stock Exchange (NSE). The securities banned for the F&O trade are BHEL, Chambal Fertilizers, Delta Corp, Hindustan Copper, India Cements, Indian Energy Exchange (IEX), Indiabulls Housing Finance, Manappuram Finance, National Aluminium and Steel Authority of India Ltd (SAIL).
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.
On September 12, BHEL saw its open interest reach 80.9% of its MWPL. The open interest for the derivative contracts of Delta Corp stood at 84.2% of its MWPL at the closing time on Tuesday, while that of Chambal Fertilisers was 80%. Hindustan Copper saw the open interest for its F&O contracts touch 83.5%.
The combined open interest for the derivatives contracts of Indiabulls Housing and India Cements stood at 95.1% and 85.7% of their MWPL on Tuesday. Manappuram and SAIL were retained on the list as the open interest as a percentage of the MWPL of their F&O contracts stood at 88.7% and 83.5%, respectively, on September 12.
All the above securities were retained on the list from Tuesday, September 12. IEX and National Aluminium were added to the list on Wednesday as the open interest of their F&O contracts touched 96.9% and 97.2%, 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 Punjab National Bank (PNB) declined below the 80% limit to 74.2%. It, hence, was 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.