| Notification Detail :
CIRCULAR
CIR/MRD/DP/ 6/2013 February 14, 2013
To
All Stock Exchanges
Dear Sir/Madam,
Sub: Introduction of Periodic Call Auction for Illiquid Scrips and Extension of
Pre-open Session to all Scrips.
1. SEBI vide circular no CIR/MRD/DP/21/2010 dated July 15, 2010 introduced Call
Auction in Pre-open session on pilot basis at NSE and BSE for scrips forming part of
Nifty and Sensex. Vide circular CIR/MRD/DP/ 01/2012 dated January 20, 2012, the
framework of call auction was extended to IPO scrips and re-listed scrips. The issue 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, whether trading
in normal market or trade for trade settlement, shall be classified as illiquid on
a stock exchange if all the following conditions are met:
2.2.1. The average daily trading volume of a scrip in a quarter is less than
10000;
2.2.2. The average daily number of trades is less than 50 in a quarter;
2.2.3. The scrip is classified as illiquid at all exchanges where it is traded.
READ FULL CIRCULAR FROM HERE
|
