Modification in duration for Call Auction in pre-open session for Initial Public Offer (IPO) and Relisted scrips

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....ips. 2. It was observed that during the call auction in pre-open session for certain IPO and relisted scrips, orders were placed at higher price in large volumes and significant portion of such orders were cancelled just before the closure of call auction session. This may have created false demand and supply and possibly manipulating the price of the scrips to the detriment of common investors. 3. In order to curb the misuse of the call auction session, based on the report of Working Group of Stock Exchanges and recommendations of Secondary Market Advisory Committee of SEBI, it has been decided to modify the current provisions related to call auction session for IPO & relisted scrips and introduce additional surveillance measures at ....

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....eeds 5% of total value of cancelled quantity across the market during the pre-open session. iii. cancelled quantity for a particular client exceeds 50% of total quantity placed by that client during the pre-open session. iv. value of cancelled quantity for a particular client exceeds 50% of total value of quantity placed by that client during the pre-open session. v. Modification of prices significantly away from previously placed order(s). vi. Stock exchanges can have additional parameters for generating alerts. 5.3. For the alerts generated based on the above parameters, stock exchanges shall provide a report to SEBI by End of Day (EOD). Further, based on analysis, stock exchanges shall seek explanat....

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....curities and to promote the development of, and to regulate the securities market. 11. This circular is available on SEBI website at www.sebi.gov.in at "Legal Framework - Circulars." Yours faithfully, Hruda Ranjan Sahoo Deputy General Manager Market Regulation Department Phone No.: 022 2644 9586 E-mail: [email protected]     Annexure-A "17.2 Call Auction in Pre-open session for Initial Public Offer (IPO) and Relisted scrips 17.2.1 Duration of Session 17.2.1.1 The session shall be for a duration of 60 minutes i.e. from 9:00 a.m. to 10:00 a.m., out of which 45 minutes shall be allowed for order entry, order modification and order cancellation, 10 minutes for order matching and trade confirmation....

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....ined. 17.2.3 Risk Management: For IPO scrips with an issue size greater than INR 250 crores the risk management provisions mentioned at 17.1.13 and 17.1.14 shall be applied for pre-open session. For IPO scrips with issue size up to INR 250 crores and Re-listed scrips it is advised that margins shall be checked and blocked for 100% of the order value at the order level itself before considering the order eligible for inclusion in pre-open session. 17.2.4 The date of commencement of pre-open session for all eligible scrips shall be uniform across stock exchanges. 17.2.5 Surveillance Mechanisms: 17.2.5.1 Stock exchanges shall have adequate surveillance mechanisms for pre-open call auction session for IPO or relisted scrips to av....