The National Stock Exchange (NSE) on June 21, 2024, issued the Policy on Handling of Good Till Cancelled Orders offered by Members to Clients.
The following has been stated namely: -
• It has been decided in consultation with SEBI and Broker’s Industry Standards Forum that the members, who offer Good Till Cancelled/Good Till Triggered orders or orders of similar type, shall formulate a policy for the same.
• The policy shall include:
o Details of Good Till Cancelled/Good Till Triggered/orders of a similar type provided by the member including its validity.
o Manner of handling of such orders in case of corporate actions (e.g. cancellation, price reset, retaining, etc. for the unexecuted orders).
o Provide a timeline within which the member shall intimate their clients about details of upcoming corporate actions applicable for such unexecuted orders of clients, which shall not be later than one day prior to the ex-date of the corporate action.
• The said policy shall be made part of the Account Opening Form/Kit under the heading “Policy on Handling of Good Till Cancelled Orders of Client” of the Policy and Procedures document and the member shall also make available the said policy to their clients by displaying the same on their website/trading application, if any.
[Notification No. Download Ref No: NSE/INSP/62528]
