The Bombay Stock Exchange (BSE), on December 23, 2025, issued a notice revising the 14th digit Location ID / Order Identifier framework for dealer terminals, in continuation of earlier Exchange notices dated September 24 and 25, 2025, aimed at enhancing controls around algorithmic trading identification and compliance.
Under the revised framework, the 14th digit identifiers have been reclassified, distinguishing between Non-Algo Trading, Algo Trading, Algo using Smart Order Routing (SOR), Inter-Exchange Algo, RMS Square Off, AMO, Basket, and Batch orders. Specifically, 14th digit identifiers 1 (Algo Trading), 2 (Algo using SOR), and 4 (Inter-Exchange Algo) shall be treated as algo orders. Trading Members are required to ensure that dealers are registered with the appropriate revised identifier to avoid misclassification and regulatory breaches.
Trading Members must update the revised 14th digit identifier by January 31, 2026. The Exchange further reiterated that non-compliance related to improper tagging of algo orders will attract penalties as per the NSE circular on rationalisation of penalties, starting from ₹20,000 per day, escalating to ₹50,000 per day after three instances, and ₹1,00,000 per day after ten instances. Members are advised to strictly adhere to the revised norms to avoid penal action.
[Notice No. 20251223-22]
