The National Stock Exchange (NSE) on April 30, 2026, issued a circular regarding Reversal Trade Cancellation Mechanism (RTCM) in Equity & Equity Derivatives Segment (Five trading days horizon).
The following has been stated: -
•National Stock Exchange of India Limited has introduced a 5-Day Reversal Trade Cancellation Mechanism (RTCM) to curb non-genuine trades and artificial volumes.
•The system monitors buy-sell reversal trades between two PANs/CP codes over a rolling 5-day period and aggregates quantities.
•Trades will be automatically cancelled intraday if they breach thresholds based on reversal quantity, ratio, price difference, and trading proportion.
•The mechanism applies only to selected scrips/contracts and operates between 10:30 AM and 3:00 PM in normal market hours.
•RTCM is an additional safeguard, but trading members remain responsible for monitoring and compliance with existing regulations.
[Circular Ref. No: 319/2026]
