To
All Trading Members of the Exchange
Sub: Periodic Call Auction for illiquid scrips
SEBI vide its circular no CIR/MRD/DP/38/2013 dated December 19, 2013 rationalized Periodic Call Auction for illiquid scrips introduced vide its circular no CIR/MRD/DP/ 6/2013 dated February 14, 2013.
The revised criteria for the scrips trading in Periodic Call Auction based on the aforementioned SEBI circular is given below:
A scrip which trades in the normal market and is not shifted to trade for trade settlement shall be classified as illiquid on a stock exchange if the following conditions are met:
i. Average daily turnover of less than Rs. 2 lakhs calculated for previous two quarters
ii. The scrip is classified as illiquid at all exchanges where it is traded
Of the scrips identified as per above criteria, scrips which satisfy any of the following conditions shall be excluded.
i. Scrips with average market capitalization more than Rs.10 cr.
ii. Scrips where company is paying dividend in at least two out of last three years.
iii. Scrips where company is profitable in at least 2 out of last 3 years and not more than 20% of promoters’ shareholding is pledged in the latest quarter and book value is 3 times or more than the face value.
Accordingly, a list of scrips identified based on the aforementioned criteria for trading in periodic call auction mechanism is enclosed as Annexure (including scrips which were moved to Periodic Call Auction Session during the last quarter). This list will be effective from April 15, 2014.
Trading members are advised to exercise additional due diligence while trading in these securities either on own account or on behalf of their clients.
For any clarifications, trading members are advised to contact Ms. Saji Sunilkumar & Mr. Jaimini Patel on 022-2272 5092 or 022-2272 3030.
For & on behalf of BSE Ltd
Usha Sharma
Dy. General Manager
Surveillance & Supervision
Date: April 4, 2014.
Encl: As above. |