What are the reasons for order rejection?

While Carbon, our trading platform, displays the exact reason for an order rejection, some of the common reasons are listed below:

• Insufficient Funds: If there are not enough funds or margin available in your trading account to place the order, it will be rejected.
• Invalid Order Parameters: Orders may be rejected if the limit price is outside the day’s circuit limits. Similarly, if the order exceeds the maximum allowed quantity (1,00,000 units) or the maximum order value of ₹1 crore in a single order, it will be rejected.
• Trading Restrictions: Regulatory limits may restrict trading in certain instruments. For example, if the maximum open interest limit set by SEBI for derivatives linked to a stock is reached, new positions cannot be created and only existing positions can be squared off.
• Technical Issues: Connectivity problems between the trading platform and the exchange may cause the order to fail.
• Invalid Account Status: Orders may be rejected if your trading account is dormant, inactive, or has pending KYC or compliance issues.
• Market Closure or Holidays: Orders placed outside market hours or during exchange holidays may be rejected depending on the order type.
• Risk Management System (RMS) Checks: Brokers may block certain orders if they do not meet internal risk management rules, such as high volatility or restricted intraday trading in specific stocks.
• Stock-Specific Restrictions: If a stock is suspended from trading, delisted, or placed under regulatory restrictions, orders for that stock will be rejected.