On Jun. 22, IND BSE issued policy for good till cancelled orders.
IND BSE issued policy on handling of good till cancelled orders offered to clients.
Certain members offer good till cancelled (GTC) or good till triggered (GTT) orders, allowing clients to specify price, validity timeframe for orders on exchange platform.
Follows IND BSE Jun. 2022 issued notice on other ways of issuance of ECNs, #73685.
Overview of Policy
During corporate actions, such GTC and GTT orders can lead to absurd trades and potential investor losses due to differing handling practices among brokers.
Members offering GTC/GTT orders must establish policy including details of these order types, their validity; procedures for handling such orders during corporate actions.
Timely client notification on upcoming corporate actions affecting unexecuted orders.
Must be integrated into the account opening form/kit and policy and procedures document, made accessible to clients on the member's website or trading app (if any).
Existing clients must be notified of this policy via email or other prescribed means.
Sep. 6, 2024 Client Acknowledgment
On Sep. 6, 2024, IND BSE said new clients onboarded from Dec. 1, 2024 must acknowledge the policy by signing it; policy must be communicated to existing clients.
If email or other communication methods fail, policy must be communicated through alternate channels, such as physical delivery, SMS, or electronic instant messages.
Sep. 6, 2024 IND NSE Signing of Policy
On Sep. 6, 2024, IND NSE issued a circular with the same information as BSE's notice above, requiring the policy on handling of GTC orders to be acknowledged by clients.
Document dated Sep. 6, 2024, received from IND NSE Sep. 9, summarized on Sep. 12.
Regulators
IND BSE; IND NSE
Entity Types
B/D; Exch
Reference
Nt 20240906-42, Cir 58/2024, NSE/INSP/63789, 9/6/2024; Nt 20240622-2, 6/22/2024
