BSE proposes cap on free order messages, plans charges beyond 10-crore daily limit

New Delhi, Dec 20 The Bombay Stock Exchange (BSE) has proposed to introduce a daily broker-wise cap on free order messages in the Equity Cash Segment -- a move aimed at improving order flow discipline and operational efficiency across the market.

According to the report, under the proposed framework, brokers will be allowed to send up to 10 crore order messages per day without any charge. Any order flow exceeding this threshold will incur a fee, the exchange stated in a circular.

According to the BSE, it will track each broker’s total daily order messages and levy charges if the count exceeds the prescribed limit.

The charge has been set at Rs 0.0025 per additional order message, which effectively works out to Rs 2.50 for every extra 10 lakh messages generated beyond the free threshold.

For monitoring purposes, BSE will count all types of order messages placed by a broker in the Equity Cash Segment, including order additions, modifications and deletions. Odd-lot orders will also be included in the calculation. However, settlement auction orders will be excluded from the order message count.

To provide operational flexibility, the exchange stated that the first instance of a broker breaching the daily threshold in a calendar month will be exempt from charges. Charges will apply only if the broker exceeds the limit again within the same month.

As part of the rollout, the stock exchange will start sharing daily order message data files with brokers from January 1, 2026. These files will show the total number of order messages generated by each broker. From January 15, 2026, the daily files will also indicate applicable charges in cases where the threshold is breached.

Any fees arising from excess order messages will be accumulated daily and recovered through the exchange’s regular monthly billing process.

The proposed framework is scheduled to come into effect from January 1, 2026. However, to ensure a smooth transition, BSE clarified that no charges will be levied during the first month of implementation, covering the period from January 1 to January 31, 2026.

Actual billing for excess order messages will begin from February 2026, in line with the proposed charging mechanism. The exchange said the initiative is intended to encourage balanced order flow management at the broker level and support a more efficient market ecosystem.

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