Description
NSE announces list of 323 securities subject to Reversal Trade Mechanism (RTCM) effective February 2026.
Summary
NSE has published the list of 323 securities that will be subject to the Reversal Trade Mechanism (RTCM) for February 2026. RTCM is a surveillance measure implemented by the exchange to monitor and manage securities exhibiting unusual price movements or trading patterns. Under this mechanism, trades in these securities may be subject to reversal if they breach specified parameters, providing an additional layer of risk management and investor protection.
Key Points
- Total of 323 securities included in RTCM for February 2026
- RTCM is a surveillance mechanism to address abnormal trading activity
- Applies to securities across various sectors and market capitalizations
- Includes companies like APOLLOPIPE, WESTLIFE, ZEEMEDIA, MILTON, BUTTERFLY, SASKEN, QUICKHEAL, and many others
- Mechanism allows for potential reversal of trades that violate specified parameters
- Part of NSE’s broader surveillance and risk management framework
Regulatory Changes
No new regulatory changes introduced. This circular provides the periodic update of securities subject to existing RTCM surveillance measures for the month of February 2026.
Compliance Requirements
- Market participants must be aware of securities under RTCM
- Brokers and traders should exercise additional caution when trading these securities
- Trading members should inform their clients about securities under RTCM
- Trades in these securities may be subject to reversal if they breach RTCM parameters
- Participants should monitor NSE circulars for any updates or changes to the RTCM list
Important Dates
- Effective Period: February 2026
- Circular Date: January 27, 2026
Impact Assessment
Market Impact: Medium - The inclusion of 323 securities under RTCM indicates heightened surveillance and potential trading restrictions for these stocks. This may lead to reduced liquidity and increased caution among traders.
Operational Impact: Traders and brokers dealing with these securities need to implement additional risk management checks and inform clients about the RTCM status. The possibility of trade reversals requires careful order placement and monitoring.
Investor Impact: Retail and institutional investors holding or trading these securities should be aware of the elevated surveillance status and potential for increased volatility or trading disruptions. The RTCM mechanism serves as both a warning signal and protective measure for abnormal market activity in these stocks.
Impact Justification
RTCM is a surveillance measure affecting 323 securities with enhanced monitoring and potential trading reversals to manage market risk and protect investors from abnormal price movements.