Under the futures and options (F&O) segment, six stocks were banned from trade on Monday, July 24, by the National Stock Exchange (NSE). 

The securities banned for F&O trade are Delta Corp, Manappuram Finance, Indiabulls Housing Finance, L&T Housing Finance, Balrampur Chini Mills, and Punjab National Bank.

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 MWPL of Delta Corp stood at 108.2% on Saturday, while that of Indiabulls Housing was 86.4%. L&TFH’s open interest reached 80.2% of the MWPL. F&O Contracts of Manappuram saw their MWPL at 81.2%. 

The open interest of the contracts of Balrampur Chini Mills and Punjab National Bank stood at 90.1% and 87.9% on Saturday.

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.