To
All Trading Members of the Exchange
Sub: Periodic Call Auction for illiquid scrips
Trading members were advised vide Exchange notice no 20130328-12 dated March 28, 2013 regarding introduction of Periodic Call Auction for illiquid scrips w.e.f. April 8, 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 classified as illiquid, if all the following conditions are met:
- The average daily trading volume of a scrip in a quarter is less than 10000;
- The average daily number of trades is less than 50 in a quarter;
- The scrip is classified as illiquid at all exchanges where it is traded.
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
1. The scrip has remained in periodic call auction for at least two quarters
2. It is not classified as illiquid as per criteria mentioned above.
Accordingly, a list of scrips which are currently traded under periodic call auction mechanism and will continue to be traded in this mechanism is enclosed as Annexure I. Further, list of additional scrips categorized as illiquid based on the trading during the period July 1, 2013 to September 30, 2013, is enclosed as Annexure II and these scrips will be traded only under periodic call auction mechanism w.e.f October 14, 2013.
List of securities which were traded in Periodic Call Auction in last two quarters and are now eligible to be traded in continuous session based on their trading during the period July 1, 2013 to September 30, 2013 is given in Annexure III.
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 Ryan D’souza and Nimesh Gandhi on 022-2272 5092 / 022-22723030.
For & on behalf of BSE Ltd.
Usha Sharma
Dy. General Manager
Surveillance & Supervision
Date: October 7, 2013
Encl: As above.
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