Description
NSE circular listing 303 securities subject to Reversal Trade Cancellation Mechanism (RTCM) framework effective January 2026.
Summary
NSE has published the updated list of securities subject to the Reversal Trade Cancellation Mechanism (RTCM) framework for January 2026. The list contains 303 securities across various market segments that will have specific provisions for cancellation of erroneous trades to maintain market integrity and protect against inadvertent price disruptions.
Key Points
- 303 securities identified for RTCM applicability in January 2026
- Mechanism allows for cancellation of erroneous trades within specified parameters
- Covers securities across multiple sectors including infrastructure, textiles, chemicals, finance, technology, and manufacturing
- Part of NSE’s surveillance framework to prevent market disruptions from inadvertent trades
- Updated list effective from January 2026
Regulatory Changes
This circular represents a periodic update to the RTCM framework list rather than introducing new regulatory changes. The Reversal Trade Cancellation Mechanism remains an established surveillance tool that allows for the cancellation of trades that occur at erroneous prices, protecting both market participants and overall market integrity.
Compliance Requirements
- Trading members must be aware of securities under RTCM framework
- Trades in listed securities may be subject to cancellation if they meet RTCM criteria for erroneous execution
- Market participants should implement appropriate risk controls for securities under RTCM
- Trading systems should account for potential trade cancellations in these securities
Important Dates
- Effective Period: January 2026
- Circular Date: December 24, 2025
Impact Assessment
Market Impact: Medium - The RTCM framework affects 303 securities, providing a safety mechanism for erroneous trades while potentially creating brief uncertainty if trades are reversed.
Operational Impact: Market participants trading in any of the listed securities need to be aware of the RTCM provisions. The mechanism helps protect against fat-finger errors and system glitches but requires operational readiness to handle potential trade cancellations.
Investor Impact: Provides protection against execution at unreasonable prices due to erroneous trades, enhancing market safety for retail and institutional investors in these securities.
Trading Implications: Securities under RTCM may experience trading halts or trade cancellations if erroneous trades are detected, requiring traders to maintain awareness and appropriate risk management protocols.
Impact Justification
Surveillance measure affecting 303 securities with specific trade cancellation provisions to prevent erroneous trades and market disruptions