Under the futures and options (F&O) segment, two stocks were banned from trade on Friday, 25 July, by the National Stock Exchange (NSE). The securities banned for the F&O trade are RBL Bank and Indian Energy Exchange.  

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.

Indian Energy Exchange and RBL Bank were retained on the list from Thursday as the open interest as a percentage of the MWPL of its F&O contracts stood at 96.5% and 91.8%, 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 Bandhan Bank declined below the 80% limit. Hence, it was removed from the list on Friday.

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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