Under the futures and options (F&O) segment, ten stocks were banned from trade on Thursday, 23 January, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya Birla Fashion and Retail, Bandhan Bank, Can Fin Homes, Dixon Technologies (India), Indiamart Intermesh, L&T Finance, Manappuram Finance, Mahanagar Gas, Punjab National Bank, 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, Can Fin Homes, and RBL Bank were retained on the list from Wednesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 83.1%, 85.3% and 80.2%, respectively. L&T Finance derivative contracts’ open interest was 86.1% of its MWPL on 23 January, compared to 98% for Dixon Technologies. 

Aditya Birla Fashion, Mahanagar Gas, and Manappuram Finance were also retained on the F&O ban list, and the open interest of its MWPL contracts stood at 84.2%, 93%, and 88.1%, respectively.

The above securities were retained on the list from Wednesday, 22 January. Indiamart Intermesh and Punjab National Bank were added to the list on Thursday as the open interest of their F&O contracts reached 103.4% and 95.6%, 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 F&O contracts of Angel One Limited and Kalyan Jewellers India declined below the 80% limit. Hence, it was removed from the list on Thursday.

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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