Policy for Handling Good Till Cancelled Orders
- Background
Exchanges vide it’s circular NSE/INSP/62528 dated June 21, 2024, NSE/INSP/63789 dated September 06, 2024, 20240622-2 dated June 22, 2024 and 20240906-42 dated September 06, 2024 pertaining to ‘Policy on Handling of Good Till Cancelled Orders offered by Members to Clients’ mandated trading members to formulate a policy in case they offer “Good Till Cancelled” / “Good Till Triggered” orders or orders of similar type.
- Scope:
The Exchanges have stated that the policy shall include –
- Details of Good Till Cancelled/Good Till Triggered orders of similar type provided by member including its validity.
- Manner of handling of such orders in case of corporate actions (e.g. cancellation, price reset, retaining, etc. for the unexecuted orders).
- Provide timeline within which the member shall intimate their clients about details of upcoming corporate actions applicable for such unexecuted orders of clients, which shall not be later than one day prior to the ex-date of the corporate action.
- Details of Good Till Cancelled/Good Till Triggered orders –
- INDmoney Private Limited (“INDmoney”) enables its clients to place “Good Till Cancelled/Good Till Triggered” (GTC/GTT) orders.
- GTT is an order facility through which a client can place buy and sell limit orders in shares, index futures & index options specifying the period for which the order instruction is valid. The period selected by the client shall be within the maximum validity date defined by INDmoney. Since client has the right to define validity date (“order validity date”).
- All existing and new clients of INDmoney who are eligible to trade in Equity Cash product & Derivatives can avail GTT facility for order placement.
- The facility of placing a GTT order is available in Equity Cash product, Index futures, and Index Options product only. As and when, GTT orders are introduced in new segments the same shall be displayed through the INDmoney website and subsequently updated in the policy.
- Client can specify disclosed quantity while placing cash orders with GTT order validity.
- GTT orders can only be placed by specifying a limit price. GTT orders cannot be placed at market price.
- If a GTT order is not executed for the entire quantity, INDmoney is authorised to place fresh orders for the unexecuted quantity for the client on the subsequent trading days till the entire quantity is executed or till the validity expires, whichever is earlier. This feature permits the client to specify the number of days during which the client intends to place the orders.
- GTT orders can be placed during the pre-open session for all scrips, however only orders in scrips that are pre-open enabled would be sent to exchange during the pre- open session. Orders in all other scrips not enabled for pre-open session would be treated as overnight orders and sent to exchange during normal trading session.
- Client shall ensure that necessary funds/margins are available to place GTT orders in their trading account for the unexecuted quantity of the order.
- “Order Validity Date” means the date entered by the client while placing GTT orders. This date shall be equal to or less than the maximum validity date defined by INDmoney which would appear as the default “Order Validity Date”. Client can choose the GTT order validity date as less than or equal to the maximum validity date defined by INDmoney. Client shall not be allowed to place orders with GTT validity beyond maximum defined validity date.
- In case the GTT order validity date falls on a non-trading day, the order is expired by INDmoney on the last trading day which falls prior to such order valid date which is a non-trading day. Post the expiry, the status of GTT order is updated as Expired (Closed).
- Once a client has placed a GTT order, INDmoney will place orders for the unexecuted quantity of the GTT order for all the days during the validity period or till the quantity is fully executed or cancelled or rejected due to any reason.
- For the unexecuted quantity orders shall be placed daily as overnight orders during the validity period, i.e. until the order validity date is less than or equal to the next trade date provided such GTT order remains unexecuted and is not cancelled, nor rejected due to any reason. The orders would be placed on these dates provided it is falling on trading days.
- Orders with GTT validity can be placed both during the market hours as well as post market hours.
- Client can place a maximum quantity of 1000 GTT orders across all eligible scrips.
- Clients can modify the quantity or limit price of a GTT orders Clients can modify the order only when the order is in 'Ordered status' (during market hours) or 'Requested status' (after market hours). “GTT Blocked” orders cannot be modified but can only be cancelled.
- All GTT orders can be cancelled.
- The Brokerage rates and applicable charges are the same for normal transactions and GTT orders. Further, GTT orders shall be settled in the same manner as normal equity / derivative market transactions.
- Stoploss orders can also be placed with GTT validity.
- Handling of GTT orders in case of corporate actions:
- Based on corporate actions GTT orders will be reviewed and cancelled except for dividend and buy back.
- Communication will be sent to the clients upon cancellation of GTT orders after ex-date.
- Clients shall review their GTT orders pro-actively whenever there may be impact of corporate action on their order/s. It would be the onus of the client to take appropriate action and place new orders accordingly.
- Policy Communication:
- The said policy shall be made part of the Account Opening Form/Kit under heading “Policy on Handling of Good Till Cancelled Orders of Client” of Policy and Procedures document and shall also be displayed on the INDmoney website.
- Further from December 01, 2024 onwards, the aforesaid policy shall be part of Account Opening Form/Kit with acknowledgement and duly signed by the client.
- The GTT Order Terms and conditions is also displayed on the INDstocks website - https://www.indstocks.com/page/gtt-tnc
- Policy Review:
- The said policy shall be reviewed on an annual basis.