BSE Notice on Pre-Trade Risk Control – Enhancements for Stop Loss Limit Orders in Equity Derivatives segment

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Date of Issue: 14-01-2026  
         
Issuer: BSE

Pre-Trade Risk Control – Enhancements for Stop Loss Limit Orders in Equity Derivatives segment

Highlights of  BSE Circular dated Jan-14 -2026

With a view to further strengthen the pre- trade risk control measures to ensure orderly trading and effective risk management, it has been decided to implement enhancements related to Stop loss orders in Equity Derivatives segment.

Trading members are requested to note that the following enhancements shall be applicable for SL-Limit orders:

• Incoming SL-limit order shall be accepted if the difference between trigger price and limit price is less than or equal to the permissible range, else it shall be rejected.
  
  
• The applicable permissible range shall be calculated as -

Abs(limit price - trigger price) = ‘X% * trigger price’ (subject to minimum absolute range)

• The parameters to calculate the permissible range shall be applicable as follows -
  
  • The aforesaid check shall also be applicable for SL-Limit order modification requests.
    
    
  • On rejection of order entry/order modification request, following error message shall be received - “Stop limit order price range check failed”.

  The above- mentioned enhancement shall be applicable for live trading with effect from Monday, January 19, 2026 , onwards. It shall be available for testing in mock trading session scheduled on Saturday, January 17, 2026.
  
  Trading members may kindly note the above changes and ensure that their systems are tested adequately before implementation.
  
  Exchange may review the aforesaid mechanism and implement further improvements/ changes based on the experience gained and inputs received from market participants.
  
  Further, attention of the market participants is drawn to various circulars and advisories issued by the Exchange from time to time regarding Pre-trade risk controls and exercise due care and diligence while placing orders.

In case of any clarification or assistance required in the implementation of this circular, you may contact : Kaushik Jethwa at kau...@secmark.in and 9870210171