Reversal Trade Cancellation Mechanism (RTCM) - Securities List for March 2026

Description

NSE releases the updated list of 300+ securities subject to the Reversal Trade Cancellation Mechanism (RTCM) for March 2026, a surveillance measure to cancel trades that are reversed within a short timeframe.

Summary

NSE has published the updated list of securities subject to the Reversal Trade Cancellation Mechanism (RTCM) for March 2026. The RTCM is a surveillance-driven mechanism under which trades in listed securities that are reversed within a specified short timeframe may be cancelled by the exchange. This circular covers approximately 300 securities in the Capital Market (CM) segment.

Key Points

• NSE has released the CM_RTCM_mar2026 list containing 300+ securities subject to RTCM for March 2026.
• RTCM enables NSE to cancel trades that form a reversal pattern (buy followed by a near-immediate sell, or vice versa) within a defined time window, as a market surveillance measure.
• The mechanism is designed to deter manipulative or wash-trading activity in less-liquid securities.
• Securities on the RTCM list span diverse sectors including financials, industrials, chemicals, textiles, media, IT, and consumer goods.
• The list is updated periodically; market participants must check for additions or removals relative to prior months.

Regulatory Changes

• Updated RTCM securities list effective March 2026, replacing the prior month’s list.
• No change to the underlying RTCM framework or cancellation criteria is indicated in this circular; only the securities list is revised.

Compliance Requirements

• Brokers and Trading Members: Must ensure their algorithmic and manual trading systems are configured to avoid reversal trade patterns in all securities on the RTCM list for March 2026.
• Clients: Should be advised of the RTCM applicability for the securities they trade to avoid inadvertent trade cancellations.
• Risk Management Systems: Should flag or block order flows that would result in near-immediate reversal trades in RTCM-listed securities.

Important Dates

• Effective Period: March 2026
• Circular Date: 23 February 2026
• Participants should update their systems before the start of March 2026 trading sessions.

Impact Assessment

• Traders: Any reversal trades executed in the 300+ listed securities during March 2026 are at risk of cancellation by NSE surveillance, potentially resulting in unexpected open positions or margin issues.
• Liquidity: Securities on the RTCM list are typically lower-liquidity stocks; the mechanism may further reduce short-term trading activity in these counters.
• Algorithmic Strategies: High-frequency and algorithmic strategies involving rapid buy-sell sequences in these securities must be reviewed and adjusted for March 2026.
• Market Integrity: The measure reinforces NSE’s commitment to surveillance against wash trading and price manipulation in less-liquid segments of the market.

Impact Justification

Affects 300+ securities listed on NSE; RTCM is an active surveillance tool that can result in trade cancellations for reversal patterns, directly impacting traders and brokers dealing in these stocks. High importance due to the large number of securities covered; medium impact as it targets a specific trading behaviour rather than broad market restrictions.