Interoperability allows trades from different exchanges to settle through a single clearing corporation. Previously, NSE trades were cleared only through NSE Clearing Limited, and BSE trades were cleared only through Indian Clearing Corporation Limited (ICCL). SEBI (WEB) introduced exchange interoperability, allowing trades from both the NSE and BSE, including equity, Currency Derivatives Segment (CDS), and F&O, to settle through a single clearing corporation.
Zerodha uses NSE Clearing Limited as its clearing partner for all trades across NSE and BSE.
With interoperability, you can buy shares on one exchange and sell them on another by switching exchanges on the order window. For example, if you buy Reliance shares on BSE, you can sell them on NSE. Similarly, if you buy Infosys shares on NSE, you can sell them on BSE.
NSE typically offers better liquidity, so exit orders default to NSE. However, if a stock trades only on BSE, your exit order will execute on BSE.
How does it affect your positions and orders
When you buy shares on BSE, your positions will display the Last Traded Price (LTP) from NSE. If you place an exit order, it will automatically execute on NSE. To exit your position on BSE instead, open the exit order and toggle the exchange selection to BSE.
Your positions now appear categorised as EQ for both NSE and BSE trades, rather than being separated by individual exchanges.