Thursday March 28 2013

News Source: Global Exchanges

Focus: General - Global Exchanges

Type: General




The National Stock Exchange of India has announced that it shall introduce Periodic Call Auction for Illiquid Securities from 8 April.

Periodic call auction session of one hour each shall be conducted throughout the trading hours with the first
session starting at 9:30 am and last session ending at 3:30 pm. The session shall close with system driven
random closure during the last one minute of order entry i.e between the 44th & 45th minute.

Securities shall be classified as illiquid (whether trading in normal market or in trade for trade settlement) if
all the following conditions are met:

The average daily trading volume of a security in a quarter is less than 10000;The average daily number of trades is less than 50 in a quarter;The security is classified as illiquid at all exchanges where it is traded.

At the beginning of every quarter, securities shall be identified as illiquid/ normal as per the above criteria.
Securities shall move in/or out of periodic call auction from second Monday or the next working day of the
following quarter. Further, security which has remained in periodic call auction for at least two quarters and
not classified as illiquid as per the criteria prescribed above shall be excluded.

Price bands may be as applicable in normal market session or as notified by surveillance from time to time
subject to a maximum price band of 20%.

Click on the above link for more details.