REVISED QUANTITY FREEZE LIMITS FOR NSE INDEX DERIVATIVES

The National Stock Exchange of India (NSE) has announced revised Quantity Freeze Limits for index derivatives, effective September 1, 2025. These changes have been made in pursuance of Chapter 1.8 (Quantity Freeze for Futures & Options Contracts) as per the consolidated circular no. NSE/FAOP/67775 dated April 30, 2025.

The NSE’s revision of quantity freeze limits is a regulatory safeguard to ensure orderly trading in index derivatives. This revision impacts the maximum order quantity that can be placed in a single order for specific index futures and options contracts. The move ensures smoother execution, market stability, and reduced risk of erroneous oversized trades.

What is a Quantity Freeze Limit?

A Quantity Freeze Limit is the maximum permissible order quantity for a single trade in Futures and Options (F&O) contracts. If an order quantity exceeds this limit, it is automatically rejected by the exchange system.

The objective is to:

• Prevent fat finger trades (unintentional large order entries).
• Strengthen risk management.
• Safeguard market stability.

Previous vs. Revised Quantity Freeze Limits:

Note: Only Bank Nifty and Finifty has been revised for now. All other indices remain unchanged.

Example for better understanding:

Suppose a trader wants to place an order in Bank Nifty Futures:

The freeze limit is 900.

If the trader tries to place an order for 1,200 quantities in one go, the order will be rejected.

Instead, it needs to be split into smaller chunks (e.g., 900 quantity + 300 quantity).

Here, ICICI Direct’s Order Slicing feature comes handy. It automatically splits large orders into multiple smaller ones, ensuring smooth execution without manual intervention. With Order Slicing, traders can navigate the freeze quantity limits effortlessly and continue trading at scale, without worrying about rejections.

How Order Slicing Works?

⮚     Auto-sliced orders: For order sizes above the exchange defined limit, our algo automatically splits them into smaller, compliant slices for smoother execution.

⮚     No need to track: Just set the total quantity, slicing quantity and the time interval. Then let the algo do the rest!

⮚     Timed execution for complete control: Each slice is placed at an interval that you define, giving you full control over the pace and timing of your order execution.

Key Takeaways:

• Mandatory order splitting: Larger trades must be broken into chunks within the freeze cap.
• Market safeguard: Designed to curb errors and protect overall market stability.

References:

1.NSE Circular (Nov 28, 2025) – Revision in quantity freeze limits for index derivatives

NSE Circular FAOP71540

2. NSE Circular (Aug 29, 2025) – Revision in quantity freeze limits for index derivatives

NSE Circular FAOP69913

3. NSE Circular (May 2, 2025) – Revision in quantity freeze limits for index derivatives

NSE Circular FAOP67792

4. NSE Circular (June 2, 2025) – Freeze limits reaffirmed (no change for June & July 2025)

NSE Circular FAOP68278