Under the futures and options (F&O) segment, eight stocks were banned from trade on Monday, July 12, by the National Stock Exchange (NSE). 

The securities banned for F&O trade on Tuesday – Punjab National Bank (PNB), Indiabulls Housing Finance, Zee Entertainment (ZEEL), Bharat Heavy Electricals Ltd (BHEL), Delta Corp, India Cements and Granules India – were retained on the list by NSE.

The NSE added the Kerala-based NBFC Manappuram Finance to its F&O ban list for trade on July 12, taking the total count under the ban list to eight.

Derivative contracts of these stocks were banned as they have 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. 

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.