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Why did my Banknifty/Nifty option order get rejected?

Strike price is outside the allowed range. Try a strike closer to the spot price.'

If orders to open new long positions in Banknifty/Nifty options are placed outside the range allowed by the mandated Open Interest restriction (i.e OTM, deep OTM strikes & deep ITM strikes), the order is rejected & the above error is displayed. 

The position limit of a Trading Member (Zerodha in this case) in equity index options contracts (Banknifty/Nifty option contracts in this case) is higher of Rs.500 crores or 15% of the total Open Interest (OI) in the market in Banknifty option contracts. Since Zerodha as a Trading Member is breaching the 15% limit of total OI in Banknifty option contracts, we are blocking Banknifty option trading outside of the range specified.

Note- You will be allowed to take fresh short option positions. The restriction is only for long options positions.

For example, let's assume Bankniftyis trading at 24000 - and due to the open interest restriction the RMS team has set the range as 1% from the spot - you will not be allowed to place a buy order 240 points above or below, i.e you will have to place your buy order between 23760 - 24240

Note: To check the allowed range for Bank Nifty/Nifty options for the trading day check the margin calculator.

Please refer this post for more information.

Note: If you have an existing open order and the allowed range was restricted to disable fresh orders for that strike price later, you will not be able to modify the existing order.