Under the futures and options (F&O) segment, nine stocks were banned from trade on Wednesday, 10 July by the National Stock Exchange (NSE). The securities banned for the F&O trade are The Aditya Birla Fashion, Balrampur Chini Mills Ltd, Bandhan Bank, Chambal Fertilizers Ltd, Gujarat Narmada Valley Fertilizers and Chemicals Ltd, India Energy Exchnage, The India Cements, Indus Towers, and Piramal Enterprises Ltd. 

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. 

The India Cements, Bandhan Bank, and Indus Towers were retained on the list from Tuesday as the open interest as a percentage of the MWPL of its F&O contracts stood at 104.3%, 87.6%, and 94.3%, respectively.  Aditya Birla Fashion derivative contracts’ open interest is 87.6% of its MWPL on 10 July, compared to 88.9% for Piramal Enterprises.

Furthermore, Gujarat Narmada Valley and Chambal Fertilizers were also retained on the list as their open interest is 100.1% and 102.8%, respectively. 

The above securities were retained on the list from Tuesday, 9 July. Balrampur Chini Mills and Indian Energy Exchange were added to the list on Wednesday as the open interest of their F&O contracts reached 111.4% and 99.4%, 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 Hindustan Copper declined below the 80% limit to 76.4%. Hence, it was removed 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.