Under the futures and options (F&O) segment, six stocks were banned from trade on Friday, 11 June, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya Birla Fashion, Chambal Fertilizers, Hindustan Copper, 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 and Aditya Birla Fashion were retained on the list from Tuesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 116.1%, and 106.1%, respectively.

Chambal Fertilizers derivative contracts’ open interest was 96.5% of its MWPL on 11 June, compared to 88.4% for Hindustan Copper.

The above securities were retained on the list from Tuesday, 10 June. Indian Renewable Energy and RBL Bank were added to the list on Wednesday as the open interest of their F&O contracts reached 108.8% and 104%, 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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