This is with reference to SEBI Circular no. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/86 dated June 20, 2024 and Exchange circular no. 20240701-70 dated July 01, 2024 regarding the subject matter, and
Exchange circular no. 20241014-48 dated October 14, 2024 regarding List of Investment Companies (ICs) and Investment Holding Companies (IHCs) eligible for Special Call-Auctions and
Exchange circular no. 20240911-14 dated September 11, 2024 regarding modification in duration for Call Auction in pre-open session for Initial Public Offer (IPO) and Relisted scrips.
Further, this is also in partial modification to various Exchange circulars regarding Special Pre-open Session for IPOs & Re-listed scrips.
Trading members are requested to take note of the following with respect to conducting the special call auction mechanism for price discovery of scrips of listed Investment Companies (ICs) and listed Investment Holding Companies (IHCs) –
Ø The price discovery session shall also be conducted for the eligible list of securities provided in the circular no. 20241014-48 dated October 14, 2024. Subsequent list of eligible securities shall be published via separate circular from time to time. A new indicator has been introduced in scrip master file to identify these eligible securities. Please refer to Exchange circular no. 20241015-16 dated October 15, 2024.
Ø All provisions and operational details under Special preopen session (SPOS) shall also be applicable to Investment Companies (ICs) and Investment Holding Companies (IHCs).
Ø Additional criteria for determining equilibrium/opening price for eligible IC & IHC securities shall be applicable as follows –
- The special call auction session shall be treated as successful if price discovery is based on orders from at least 5 Permanent Account Number (PAN) based unique buyers and sellers i.e. at least 5 unique PAN on each side.
- If the security is listed on multiple stock exchanges and call auction session is successful on any one stock exchange, the price discovered at that stock exchange will form the base for normal market trading at the other stock exchange.
- If call auction is not a success on day 1, then such session shall again be conducted on subsequent trading days till such time the price is discovered at any of the Exchanges.In case of unsuccessful price discovery due to the above-mentioned additional criteria not being met, all the outstanding orders shall be cancelled by the exchange at the end of session including available matchable orders where applicable.
Trading members and third-party trading application vendors are requested to note that a new version of ETI API, version 1.6.11, has been released for a new error code for cancelled orders due to PAN criteria not met. Said change is available in the simulation (test) environment for Equity segment. Trading members and third-party trading application vendors are requested to note the same and plan for incorporating changes in their respective front end trading applications as applicable.
The above-mentioned enhancements shall be made applicable in the live environment for trading from Monday, October 28, 2024. To facilitate the roll-out, the changes shall be available during the mock trading session on Saturday, October 26, 2024.
In case of any queries, members may kindly get in touch with us as per following contact details –
For & On Behalf of BSE Ltd,
Arvindkumar Iyengar
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Vivek Garg
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Chief General Manager
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Chief General Manager
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I.T. Development
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Trading Development
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October 21, 2024
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