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Why did the market order get executed as a limit order?

The market order gets executed as a limit order for all the instruments in BSE and for some illiquid stocks in NSE because of the Market Price Protection (MPP) (WEB) enabled by the exchanges. MPP was introduced to reduce the risk of orders being executed at prices far away from the Last Traded Price (LTP) due to the bid-ask spread.

When a market order is placed on NSE for an illiquid stock, the order will be placed as a limit order or get rejected based on the criteria mentioned by the exchanges. (WEB)

When a market order is placed on BSE, it is executed as a limit order. The order will be executed at the next best available bid or offer within 3% of the LTP.

Example Scenario

If a buy market order for DENABANK-BSE with an LTP of ₹12 is placed, a limit order with market protection of 3% will be placed instead, i.e., the order will get executed at the next best offer within ₹12.36.