Why was my SLM order with trigger price outside circuit limits not rejected?

If you place a SL-M order, the stop-loss trigger leg isn’t really an active order which is placed on the Exchange. Only the first leg gets placed immediately, while the stop-loss order is placed on the Exchange only when the trigger price is breached.

Since the defined trigger price is beyond the circuit limit, it will never be breached, and the stop-loss leg will not be placed on the Exchange. It will stay open in your order book. Hence there is no question of rejection.

For Example:

  • You placed an SLM buy order, with the stop loss trigger price @ 89

  • The stock closed @ 100 on the previous day.

  • Price Circuit limit is 10%.

  • Hence, the price will never touch 89.

  • Thus, the stop loss leg will never be triggered but will remain open on your order book.

  • There will be no question of rejection since the order will not be sent on the Exchange.