The National Stock Exchange of India Limited (NSE), on May 8, 2026, issued Circular Ref. No. 342/2026 announcing that the five-day Reversal Trade Cancellation Mechanism (RTCM) for Equity and Equity Derivatives segments will go live from May 11, 2026. The mechanism has been introduced to help prevent reversal trades between two PANs where specified thresholds are breached.
Under the revised framework, eligible reversal trades identified by the Exchange will be automatically cancelled on an intraday basis. NSE clarified that only eligible same-day reversal trades will be cancelled and no trades pertaining to previous trading days will be reversed. Upon cancellation, trading terminals will display a system-generated message indicating that the trade has been cancelled by the Exchange under the RTCM process.
The Exchange further clarified that the RTCM facility does not dilute or replace the obligations of Trading Members under earlier surveillance and anti-manipulation circulars relating to reversal trades and suspicious transactions. Members have been advised to continue monitoring client activities and comply with surveillance obligations prescribed under existing NSE regulatory frameworks. [Circular Ref. No. 342/2026 | NSE/SURV/74137]
