This has reference to SEBI circular SEBI/HO/MRD/TPD-1/P/CIR/2024/58 dated May 24, 2024 and partial modification of Exchange notice no. 20241112-11 dated November 12, 2024, the Exchange hereby notifies the below update applicable to stock options:
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Update
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Existing Criteria
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Revised Criteria
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Trading in options segment during cooling off in underlying / futures contracts as mentioned in Para (E) SEBI/HO/MRD/TPD-1/P/CIR/2024/58 dated May 24, 2024:
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2.2.5 of Annexure B - Pending orders (in the sentimental direction of price trend in the underlying) beyond the temporary floor or ceiling shall be cancelled by the Exchange.
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Pending orders (in the sentimental direction of price trend in the underlying) beyond the temporary floor or ceiling i.e. Hard Price band shall not be cancelled by the Exchange.
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In continuation to the above, market participants should also note that;
- Passive orders i.e. existing outstanding orders which are beyond the temporary floor or ceiling, shall continue to remain in the order book even if the price band range has moved and shall be available for matching as per price time priority.
- Any incoming limit order placed beyond such temporary floor or ceiling, shall automatically be rejected by the Exchange.
- Once price band for underlying scrip / contract is flexed, at the end of cooling off period, temporary floor or ceiling on option contracts on that underlying shall be withdrawn.
All other provisions as mentioned in Exchange notice no. 20241112-11 dated November 12, 2024, shall remain unchanged.
The above amendment shall be available for testing in mock trading session being conducted on December 14, 2024 and shall be made Live w.e.f. December 16, 2024.
Following is the summary of earlier important releases pertaining to the SEBI Circular SEBI/HO/MRD/TPD-1/P/CIR/2024/58 dated May 24, 2024.
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Sr. No
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Particulars
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Subject
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Download Reference Notice no.
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Date
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1
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SEBI Circular Forwarded by Exchange
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Enhancement of Dynamic Price Bands for scrips in the Derivatives segment
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20240527-59
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27-May-24
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2
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(A) Enhancing conditions precedent before flexing price band
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Enhancement of Dynamic Price Bands for Stock Futures - Update
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20240531-2
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31-May-24
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3
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(B) Aligning price bands between underlying and its futures contracts.
(C) Strengthening Volatility/Risk Management and minimizing information asymmetry for extreme price movement
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Enhancement of Dynamic Price Bands for Stock Futures - Update
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20240816-60
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16-Aug-24
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4
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(D) Sliding price band on account of flexing.
(E) Trading in options segment during cooling off in underlying / futures contracts
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Enhancement of Dynamic Price Bands for scrips in the Derivatives Segment – Sliding price band & cancellation of orders beyond new price band with Temporary floor or ceiling for Options contracts during cooling off period.
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20241112-11
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12-Nov-24
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For any further clarifications, members are advised to contact on 022-2272 3030 and email id bse.surv@bseindia.com
For & on behalf of BSE Ltd.
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Sachin Lad
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Harish Kadam
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Assistant General Manager
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Manager
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Surveillance
December 13, 2024
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Surveillance
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