Pre-Trade Risk Control Limit Price Protection in Equity Derivatives Segment
BSE notice 20260629-43 · 29 Jun 2026
Official title
Pre- Trade Risk Control- Limit Price Protection in Equity Derivatives Segment – Update
Official record
Open source pageSummary
Check the official recordWhat changed
BSE updates the pre-trade risk control mechanism for the Equity Derivatives segment. The Exchange removes the Price Reasonability Check for Single Stock Derivatives. The Exchange implements the Limit Price Protection mechanism for Single Stock Derivatives. This change applies to Stock Options and Stock Futures. The Exchange sets specific percentage ranges and minimum absolute values for the Limit Price Protection mechanism. Trading members must participate in a mock trading session on July 4, 2026. The new mechanism takes effect on July 6, 2026. Market participants must ensure compliance with these risk control requirements.
What you must do
- Trading members must participate in the mock trading session.
Key dates
- Mock trading session date
- 04 Jul 2026
- Effective from
Document text
[Image omitted. See the official document.]
NOTICE
| Notice No. | 20260629-43 |
|---|---|
| Notice Date | 29 Jun 2026 |
| Category | Trading |
| Segment | Derivatives |
| Department | Trading Operations |
| Subject | Pre- Trade Risk Control- Limit Price Protection in Equity Derivatives Segment – Update |
| Attachments | No Attachment |
In partial modification to Exchange Notice no. 20240628-46 dated June 28, 2024, trading members are requested to note the Price Reasonability Check (“PRC”) for Single Stock Derivatives will cease to operate from July 6, 2026 and Limit Price Protection (“LPP”) mechanism would be applicable for Single Stock Derivatives. LPP range shall be as follows -
| Instrument Type | % on Ref. Price (LPP%) | Subject to minimum absolute value (₹) |
|---|---|---|
| Stock Options | 40.00% | ₹ 20 |
| Stock Futures | 3.00% | ₹ 1.50 |
In view of the proposed migration from PRC to LPP and the requirement to conduct a mock trading session, the LPP mechanism for Single Stock Derivatives shall be implemented with effect from trade date July 6, 2026, following the mock trading session scheduled on July 4, 2026.
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. Participants have been advised to exercise due care and diligence while placing orders.
All market participants are required to take note of the above and ensure compliance.
For & on Behalf of BSE Limited
Kaushal Mehta
Vice President - Trading Operations
Soumil Shah
Deputy Vice President - Surveillance
Source details
- Source
- BSE Ltd (Bombay Stock Exchange)
- Type
- notice
- Published by source
- 29 Jun 2026
- Document number
- 20260629-43
- Issuing division
- Trading Operations
- Effective date
- 06 Jul 2026
- Coverage area
- securities