Description
NSE circular listing 324 securities subject to Reversal Trade Cancellation Mechanism (RTCM) for November 2025, a surveillance measure to prevent price manipulation.
Summary
NSE has published the list of 324 securities subject to the Reversal Trade Cancellation Mechanism (RTCM) for November 2025. RTCM is a surveillance measure that allows the Exchange to cancel trades deemed erroneous or manipulative to maintain market integrity and protect investor interests. This mechanism is applied to securities identified as requiring enhanced monitoring.
Key Points
- Total of 324 securities are under RTCM framework for November 2025
- RTCM enables NSE to reverse trades that are erroneous or appear to be manipulative
- Mechanism aims to prevent artificial price movements and protect market integrity
- List includes diverse range of companies across sectors
- Monthly surveillance list update for market participants
- Traders and brokers must exercise enhanced caution when trading these securities
Regulatory Changes
No new regulatory framework changes. This is a monthly operational update of securities subject to existing RTCM surveillance framework.
Compliance Requirements
- Market participants must be aware of securities under RTCM when executing trades
- Brokers should inform clients about the enhanced surveillance status of these securities
- Trades in RTCM securities may be subject to cancellation if deemed erroneous or manipulative
- Enhanced due diligence required for orders in these securities
- Risk management systems should flag RTCM securities for additional scrutiny
Important Dates
- Effective Date: November 2025 (applicable for the entire month)
- Circular Date: October 24, 2025
Impact Assessment
Market Impact: High - Affects 324 securities where trades can be cancelled if deemed erroneous or manipulative. This creates additional uncertainty for traders and may impact liquidity in these counters.
Investor Impact: Medium to High - Investors trading in these securities face risk of trade cancellation. Requires enhanced vigilance and understanding of price movements.
Operational Impact: Medium - Brokers and trading members need to maintain updated lists, configure risk management systems, and provide adequate client disclosures.
Surveillance Rationale: Securities are placed under RTCM based on volatility patterns, price manipulation concerns, or other market integrity issues identified by NSE surveillance team.
Impact Justification
RTCM is a critical surveillance mechanism affecting 324 securities, enabling NSE to cancel erroneous or manipulative trades. High impact on trading operations and investor protection, though routine monthly update.