NSE Introduces Pre-Emptive Rejection: Users! Stay Informed.

NSE Introduces Pre-Emptive Rejection: Users! Stay Informed.
Photo by Maxim Hopman / Unsplash


In a move to enhance trading safety and ensure compliance, the National Stock Exchange (NSE) has announced a critical update regarding algorithmic market orders. Starting July 7, 2025, any market order placed via algorithmic systems will be automatically rejected by the Exchange in the Equity (Capital Market) segment.

This change will be implemented directly by brokers, as per NSE regulations. Cirrus users do not need to take any action, as this update will be handled at the broker level. We will, however, continue to keep you informed and updated so that your trading experience remains seamless and compliant.

What's Changing?

According to recent NSE circulars:

  • 📄NSE/CMTR/21793 (Sept 28, 2012): Introduced minimum risk control requirements for algorithmic trading.
  • 📄 NSE/SURV/55281 (Jan 17, 2023): Prohibited algo-driven market orders and outlined penalty structures.
  • 📄 NSE/CD/67733 (Apr 28, 2025) & NSE/COM/68215 (May 28, 2025): Rolled out the pre-emptive rejection mechanism, now being extended to the Capital Market segment.

How It Works

The NSE system identifies algo orders via the 13th digit of the 15-digit NNF field in each trade message.

If an order is placed as a market order by an algorithm, the Exchange will automatically reject it before execution.

This safeguard is meant to prevent unintended or risky executions from misconfigured algorithms.

Note: This rule is not applicable during the Closing Session or Post-Close market in the capital market segment.

When Will It Be Active?
The mechanism will be enforced by brokers from July 7, 2025, in accordance with NSE guidelines.

There's no need to change your trading setup — your broker and Cirrus will handle this in the background.

Cirrus = Compliance, Clarity, Confidence
At Cirrus, we stay in sync with all major exchange and broker-level regulatory changes to ensure.

Have questions? Contact our support team or comment your doubts below — our team will get back to you ASAP.

References

https://nsearchives.nseindia.com/content/circulars/CMTR68802.pdf https://archives.nseindia.com/content/circulars/CMTR21793.pdf https://nsearchives.nseindia.com/content/circulars/CD67733.pdf https://nsearchives.nseindia.com/content/circulars/SURV55281.pdf

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