Regulatory Alerts2026-02-04
Revision of Order-to-Trade Ratio (OTR) framework
SEBI has revised the Order-to-Trade Ratio framework to impose economic disincentives on high OTR algorithmic orders by amending the Master Circular for Stock Exchanges. The modifications exempt equity option orders within ±40% of LTP or ±INR 20, and exclude algorithmic orders placed by Designated Market Makers for market making from OTR computations. These changes take effect on April 06, 2026, requiring stock exchanges to update their bye-laws and notify market participants.
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