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

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..... ction 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, whether trading in normal .....

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..... iod 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 call auction session sh .....

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..... e in the normal market. 3.3. All orders shall be checked for margin sufficiency at order level for inclusion in pre-open session. 3.4. All other conditions for pre-open call auction session shall be as per circulars CIR/MRD/DP/21/2010 dated July15, 2010, CIR/MRD/DP/27/2010 dated August 27, 2010 and CIR/MRD/DP/32/2010 September 17, 2010. 4. The provisions of this circular shall be effective from April 01, 2013. 5. Stock Exchanges are directed to: 5.1. take necessary steps and put in place necessary systems for implementation of this circular; 5.2. make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision; 5.3. bring the provisions of this circular to the notice .....

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