The Bombay Stock Exchange (BSE) on October 27, 2023, issued the Advisory on Market Order Feature.
The following has been stated namely: -
• Due care must be exercised while placing market orders. The Feature of the market order is a vital feature facilitating risk reduction by prioritising the execution at the prevailing prices.
• In extremely volatile conditions, incorrect usage of market orders may also cause price slippages which can have financial bearings.
• Trading Members (TMs) are urged to use the market order feature with due care and also assess the suitability of the said feature for specific client needs.
• TMs shall continuously analyse/monitor effective use of market order feature in their systems, both at TM and user level, to enhance the safety to market participants including the clients.
[Notification No. 20231027-46]
