BSE swaps PRC with Limit Price Protection for single stock derivatives
From July 6, 2026, single stock options face a 40% price band (min ₹20) and futures a 3% band (min ₹1.50) under the new LPP mechanism. Mock trading on July 4.
What changed
- PRC for single stock derivatives ceases on July 6, 2026; LPP takes effect.
- Stock options: LPP% = 40.00%, min ₹20; stock futures: LPP% = 3.00%, min ₹1.50.
- BSE schedules a mock trading session on July 4, 2026.
The read
BSE is overhauling its pre-trade risk controls for single stock derivatives, replacing the Price Reasonability Check with a Limit Price Protection mechanism. From July 6, 2026, every order in single stock options will be capped within a 40% band (minimum ₹20), while futures orders will be limited to a 3% band (minimum ₹1.50). The move introduces clear, uniform price bands, replacing the previous reasonability logic. Members must reconfigure automated trading systems and participate in the July 4 mock session. The change is procedural but carries real teeth: a futures order outside 3% of the reference price will simply be rejected.
Primary source: official circular (PDF)