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The Order-to-Trade Ratio (OTR) framework is revised to exempt two categories from penalty calculations: orders in equity option contracts within 40% of last traded price (premium) or within INR 20, whichever is higher, and algorithmic orders placed by Designated Market Makers for marketmaking activity - each category therefore will not count towards high OTR penalties. The OTR framework continues to apply to cash and derivative segments and liquidity enhancement schemes. SEBI sets April 06, 2026 as the effective date and directs exchanges to amend byelaws and notify market participants accordingly.
The Order-to-Trade Ratio (OTR) framework is revised to exempt two categories from penalty calculations: orders in equity option contracts within 40% of last traded price (premium) or within INR 20, whichever is higher, and algorithmic orders placed by Designated Market Makers for marketmaking activity - each category therefore will not count towards high OTR penalties. The OTR framework continues to apply to cash and derivative segments and liquidity enhancement schemes. SEBI sets April 06, 2026 as the effective date and directs exchanges to amend byelaws and notify market participants accordingly.
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