Under the futures and options (F&O) segment, nine stocks were banned from trade on Tuesday, 17 June, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Aditya Birla Fashion, Birlasoft, Central Depository Services, Chambal Fertilizers, Housing and Urban Development Corporation, Indian Renewable Energy, Manappuram Finance, 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, Central Depository Services, and Aditya Birla Fashion were retained on the list from Monday as the open interest as a percentage of the MWPL of its F&O contracts stood at 95.6%, 84.8%, and 92.8%, respectively.

Chambal Fertilizers derivative contracts’ open interest was 86.7% of its MWPL on 17 June, compared to 89.3% for Birlasoft, 83.6% for Indian Renewable Energy. 

Furthermore, Housing and Urban Development, Manappuram Finance, and RBL Bank were also retained on the list as their open interest is 90.7%, 89.1%, and 94.2%, 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 F&O contracts of Indian Energy Exchange declined below the 80% limit. Hence, it was removed from the list on Tuesday

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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