The Bombay Stock Exchange (BSE) on June 28, 2024, notified regarding the introduction of a Price Reasonability Check in Single Stock Derivatives.
The following has been stated namely: -
• It is in reference to Exchange Notice no. 20240430-50 dated April 30, 2024, announcing the launch of Single Stock Derivatives in the Equity Derivatives Segment with a change in expiry day and Exchange notice number 20240420-1 dated April 20, 2024, on “Pre-Trade Risk Control – Limit Price Protection in Equity Derivatives Segment.
• It states that during the initial phase, Price Reasonability Check (PRC) shall be applicable in lieu of the Limit Price Protection (LPP) mechanism for Single Stock Derivatives contracts in the Equity Derivatives Segment with effect from July 1, 2024.
• It states that the Price Reasonability Range (PRR) for contracts shall be applicable as:
o PRR slabs for Stock Futures
o PRR slabs for Stock Options
Kindly refer to the attached document for more details on PRR slabs.
[Circular no. - 20240628-46]
