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NSE BSE MCX CDS Order Rejections Reasons and Solution

Order Rejections: Simplified Reasons and Solutions in NSE, BSE, MCX, and CDS Platforms"

Order rejection is a situation where a submitted order to buy or sell a security or commodity on exchanges like nse bse mcx and ncdex NSE (National Stock Exchange), BSE (Bombay Stock Exchange), MCX (Multi Commodity Exchange), or CDS (Central Depository Services) is not executed and is returned by the exchange. nse bse mcx, this means that the order is not processed and the desired transaction does not take place.

When an order rejected, it is typically due to certain factors such as insufficient funds, incorrect order details, price or quantity restrictions, circuit limits, order type restrictions, margin requirements, trading halts or suspensions, NSE BSE MCX CDS Order Rejections or technological issues. These reasons can vary depending on the specific exchange and the nature of the trade.

Order rejection is an important mechanism in place to maintain fairness, transparency, and stability in the financial markets. It helps ensure that orders are executed in accordance with the exchange rules and regulations and that traders have accurate and valid information.

Traders need to be aware of the potential cancel order reason for order rejection and take necessary precautions to avoid them. This includes maintaining sufficient funds in their trading accounts, providing accurate order details, adhering to exchange restrictions and circuit limits, and staying updated on market conditions and announcements.

In case of a rejection order, it is advisable for traders to review the reasons provided by the exchange, rectify any errors or discrepancies, and take appropriate action to resubmit the order if necessary. It is also important to seek assistance from the broker or exchange's technical support if there are persistent issues or uncertainties regarding the rejection.

Here are some common reasons for order rejections and potential solutions:

1. Insufficient funds:

  • Reason- If the trader does not have enough funds in their trading account to cover the order's value, the exchange may reject the order.
  • Solution- Ensure that you have enough funds in your trading account to cover the order's value. Deposit additional funds if needed.

2. Incorrect order details: 

  • Reason- If there are mistakes or inaccuracies in the order parameters, such as price, quantity, or order type, the exchange may reject the order. It is crucial to double-check all the order details before submitting it.
  • Solution- Double-check all order parameters, including price, quantity, and order type, to ensure accuracy before submitting the order.

3. Price or quantity restrictions:

  • Reason- Some securities or commodities may have specific price or quantity restrictions imposed by the exchange. If the order exceeds these limits, it may be rejected.
  • Solution- Familiarize yourself with the specific restrictions imposed by the exchange for certain securities or commodities. Ensure that your order complies with these restrictions.

4. Circuit limits:

  • Reason- During times of extreme market volatility, exchanges impose circuit limits to control excessive price fluctuations. If the order violates these limits, it can lead to rejection.
  • Solution- During periods of high volatility, exchanges implement circuit limits to control extreme price fluctuations. Make sure your order is within the allowed circuit limits to avoid rejection.
5. Order type restrictions:

  •  Reason- Some exchanges may restrict certain order types, such as market orders or stop-loss orders, for specific stocks or commodities. Verify that the order type you intend to use is allowed for the particular security.
  • Solution- Certain stocks or commodities may have restrictions on specific order types, such as market orders or stop-loss orders. Submitting an order type that is not allowed for a particular security can result in rejection.
6. Margin requirements:

  • Reason - If you are trading on margin, ensure that you maintain the required margin in your account. Failure to meet margin requirements can result in order rejection.
  • Solution - If the trader is trading on margin, they need to ensure that they maintain the required margin in their account. Failure to meet margin requirements can lead to order rejection.
7. Trading halt or suspension:

  • Reason- If a stock or commodity is under a trading halt or suspension due to corporate actions, regulatory issues, or other reasons, your orders related to that security may get rejected. Stay updated on any such announcements to avoid rejection.
  • Solution- If a stock or commodity is under a trading halt or suspension due to corporate actions, regulatory issues, or other reasons, any orders related to that security may be rejected.
8. Technological issues:

  • Reason- Occasionally, technical glitches or network connectivity problems can lead to order rejections. Contact your broker or exchange's technical support for assistance in such cases.
  • Solution- Occasionally, technical glitches network connectivity problems, or system failures can result in order rejections.

Here's a simplified table with the types of order rejections and their solutions:

Rejection Code

Rejection Reason

Solution

1506

Client not registered

Activate the account in the specific segment

16000

The trading system not available

Avoid placing Futures & Options orders after 3:30 pm

16278

Markets not open for trading

Place NFO orders after 9:15 am

16387

Security not allowed to trade in this market

Certain stock options may have restricted strike prices

24453

User ID not permitted for ATF

Square off the position directly

505

Market currently not open for trading

Place MCX orders after 9:00 am

600

Invalid trigger price for stop-loss orders

Ensure trigger price is greater than the price for Sell SL

602

Trigger price not in multiples of tick size

Ensure the trigger price is less than the price for Buy SL

ADAPTER is down

Order placed before market hours

Place orders after 9:00 am

BO: auto square off executed

Pre-market not allowed for BO orders/intraday square off

Avoid placing pre-market BO orders or intraday square off

BO: Self Trade Rejection

Order canceled if buyers and sellers have the same PAN number

- Ensure that the buyers and sellers involved in the transaction have different PAN numbers. Each party should have a unique PAN number associated with their account

BO: auto square off executed

Avoid placing pre-market Bracket Orders or intraday square-off before auto square off

BO: Self Trade Rejection

Orders with the same PAN number for buyer and seller will be automatically canceled

BO: Square off and SL ticks cannot be zero

Provide a Stop Loss (SL) or Square Off price in Bracket Orders

Exchange not enabled for this account

Activate the account in the specific segment

Exchange not enabled for this user

Activate the account in the specific segment

Order quantity is negative or zero

Ensure the order quantity is not zero

RMS: Auto Square Off Block

Avoid attempting to square off positions after 3:10 pm in Equity (MIS) orders

RMS: NO Last Trade Price

Trading is not allowed for stocks with no recent trades

RMS: Blocked for ALUMINIUM FUTCOM mcx_fo MIS

Due to high volatility, avoid placing MIS orders for Aluminium Futures. Use BO, CO, or NRML order types

RMS: Blocked for B B bse_cm CNC

Certain "B/BE" category stocks are blocked due to settlement risk. Trading in CNC (delivery) is not allowed

RMS: Blocked for BE B nse_cm CNC

Certain "B/BE" category stocks are blocked due to settlement risk. Intraday trades in CNC (delivery) are not allowed

RMS: Blocked for cde_fo CO

CO (Cover Order) orders are blocked in the currency segment. Use MIS or NRML order types instead

RMS: Blocked for COPPER FUTCOM mcx_fo MIS

Before the tender period, trading in base metal scripts in MIS (Intraday) is not allowed. Use BO, CO, or NRML order types

RMS: Blocked for CRUDEOIL OPTFUT mcx_fo

Trading in CRUDEOIL OPTFUT mcx_fo is blocked due to low open interest. Use BO, CO, or NRML order types

RMS: Blocked for an account - "Client code" mcx_fo MIS

Trading in the specific scrip is blocked due to heavy volatility. RMS blocks it to avoid potential losses

RMS: Margin Exceeds

Margin shortfall - The available margin is insufficient. Ensure sufficient margin is available for trading

RMS:Rule: Check T1 holdings including TT/BE/Z/T/TS

Selling before settlement without sufficient holdings can result in rejection

Conclusion

Order rejections can occur due to various reasons in trading platforms such as NSE, BSE, MCX, and CDS. It is important to understand the specific rejection codes and their meanings in order to find appropriate solutions.
By addressing the specific issues causing the rejections, such as activating the account in the desired segment, providing valid order quantities, avoiding trading during restricted hours or for restricted securities, and ensuring compliance with margin requirements, you can overcome most order rejection problems.
It is always recommended to consult with your broker or the exchange for specific guidance and assistance in resolving order rejection issues. They can provide you with accurate solutions tailored to your specific situation and trading platform.

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