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The Bombay Stock Exchange (BSE) has proposed to introduce a daily broker-wise cap on free order messages in the Equity Cash Segment, aimed to improve the market's order flow discipline and operational efficiency.

The Exchange states that brokers will be able to send 10 crore order messages a day free of charge under the new rules. Beyond this limit, the order flow will be subject to a fee, as per the exchange's announcement made in a circular.

BSE has informed the market that it will monitor the daily order messages of each broker and will charge them if the total is more than the prescribed limit.

The fee is fixed at Rs 0.0025 per extra message, which means that for every 10 lakh messages sent over the free limit, an amount of Rs 2.50 will be charged.

The BSE will include all types of order messages done by brokers in the Equity Cash Segment for counting purposes, including adding, changing and deleting orders. Odd-lot orders will also be part of the count. Settlement auction orders, on the other hand, will not be included in the order message count.

For operational versatility, the exchange mentioned that the initial case of a broker violating the daily limit in a calendar month will be free of charges. If the broker goes over the limit again in the same month, then the charges will be given.

The stock exchange will, as part of the introduction, start giving brokers the daily order message data files from January 1, 2026. These files will contain the total number of order messages that each broker has produced. Besides that, from January 15, 2026, the daily files will also show the applicable charges if the threshold has been exceeded.

The charges from the excess order messages will be totalled daily and collected through the exchange’s regular monthly billing.

The new system is expected to start on January 1, 2026, as planned. Nevertheless, BSE promised that no charges would be made during the first month of implementation, which is from January 1 to January 31, 2026, in order to make the transition easier.

Billing for excess order messages will start in February 2026 as per the proposed charging mechanism. The exchange remarked that the move is aimed at fostering well-distributed order flow management at the broker level as well as a more efficient market ecosystem.

With IANS inputs