SEBI relaxes OTR norms for equity options, exempts market makers’ algo orders
SEBI relaxes OTR norms for equity options, exempts market makers’ algo orders
Capital Market Regulator, Securities and Exchange Board of India (SEBI) has revised its Order-to-Trade Ratio (OTR) framework, easing compliance for equity options traders and exempting algorithmic orders placed by designated market makers from OTR penalties
In a circular issued on Wednesday, SEBI said that for equity option contracts, orders placed within ±40% of the last traded price (premium) or ±Rs 20, whichever is higher, will be exempted from the framework for imposing penalties for high OTR. Earlier, the exemption threshold across segments was limited to a narrow band around the last traded price.
SEBI circular read, “Orders placed within the range of ±0.75% of the LTP shall be exempted from the framework for imposing penalty for high OTR. H...
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