CS Ankur Srivastava (Company Secretary & Compliance Officer) 10 May 2013
Introduction of Periodic Call Auction for illiquid scrips
Introduction of Periodic Call Auction for illiquid scrips w.e.f. April 1, 2013. Stock exchanges identify illiquid scrips at the beginning of every quarter and move such scrips to periodic call auction mechanism.
As per SEBI circular no. CIR/MRD/DP/6/2013 dated February 14, 2013, a scrip is shortlisted as illiquid if all the following conditions are met:
Trading in Illiquid Scrips in the equity market shall be conducted only through periodic call auction sessions.
Scrip will be moved out from periodic call auction mechanism to normal trading session if the following criteria are met
A list of illiquid securities for which periodic call auction will be conducted with effect from April 8, 2013 is enclosed as Annexure. The list of illiquid securities is based on trading activity during the quarter January-March 2013.
Trading members are advised to exercise additional due diligence while trading in these securities either on own account or on behalf of their clients.
Trading Members are requested to note the penalty criteria for certain trades :
In the event where maximum of buy price entered by a client (on PAN basis) is equal to or higher than the minimum sell price entered by that client and if the same results into trades, a penalty shall be imposed on such trades. The penalty shall be calculated and charged by the exchange and collected from trading members on a daily basis. Trading members may recover such penalty from clients. The penalty so collected shall be deposited to Investor Protection Fund.
Penalty for each such instance per session will be higher of the following: