Under the futures and options (F&O) segment, five stocks were banned from trade on Friday, September 8, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, BHEL, Delta Corp, Hindustan Copper, India Cements and Indiabulls Housing Finance, Manappuram Finance, Punjab National Bank (PNB) and Steel Authority of India Ltd (SAIL).
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 open interest for the derivative contracts of BHEL stood at 83.5% of its MWPL at the closing time on Thursday, while that of Balrampur Chini was 90.8%. Hindustan Copper saw the open interest for its F&O contracts touch 91.3%. On September 7, Delta Corp saw its open interest reach 94.5% of its MWPL.
The combined open interest for the derivatives contracts of Indiabulls and India Cements stood at 105.2% and 94.8%, respectively, of their MWPL on Thursday. Manappuram and SAIL were retained on the list as the open interest as a percentage of the MWPL of their F&O contracts stood at 97.5% and 96.5%, respectively, on September 7.
All the above securities were retained on the list from Thursday, September 7. PNB was added to the list on Friday as the open interest of its F&O contracts touched 99.9%.
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.