Introduction of Periodic Call Auction for Illiquid Scrips and Extension of Pre-open Session to all Scrips

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of extending call auction mechanism in pre-open session to all scrips was deliberated in Secondary Market Advisory Committee (SMAC). SMAC also made recommendation on introduction of trading through periodic call auction mechanism for illiquid scrips in the equity market. Accordingly, it has been decided to implement following: 1.1. Introduce trading through periodic call auction for illiquid scrips in equity market 1.2. Extend the pre-open session to all other scrips in the equity market 2. Periodic Call Auction for Illiquid scrips 2.1. Trading in illiquid scrips in the equity market shall be conducted only through periodic call auction sessions. 2.2. Criteria for illiquidity - For the purpose of this circular, a scrip, whet....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....shall be a buffer period for closing the current session and facilitating the transition to next session. The session shall close randomly during last one minute of order entry between the 44th & 45th minute. Such random closure shall be system driven. 2.8. Un-matched orders- All un-matched orders remaining at the end of a call auction session shall be purged. 2.9. Price band - A maximum price band of 20% shall be applicable on the scrips through the day. Exchanges may reduce the price bands uniformly based on surveillance related concerns. 2.10. If the Market wide Index Circuit Breaker gets triggered at any time during the periodic call auction session, the session shall be cancelled and all orders shall be purged. The periodic ca....