Rationalization of Periodic Call Auction for Illiquid Scrips
Summary
SEBI rationalizes the periodic call auction mechanism for illiquid scrips based on SMAC recommendations. The criteria for classifying a scrip as illiquid are modified to include turnover and market capitalization thresholds, with specific exclusions. Stock exchanges are directed to implement these changes by amending bye-laws and notifying member brokers.
Text
A scrip is classified as illiquid if average daily turnover is less than Rs.2 lakhs for previous two quarters and it is classified as illiquid at all exchanges where traded.
Scrips with average market capitalization more than Rs.10Cr, or paying dividend in 2 out of last 3 years, or profitable in 2 out of 3 years with limited promoter pledge are excluded.
The scrip has remained in periodic call auction for at least one quarter.
There shall be at least 2 sessions in a trading day with one uniform closing session across the exchanges.
Orders may remain valid throughout the trading day and un-matched orders may be moved into next call auction session.
Stock Exchanges are directed to take necessary steps, amend bye-laws, and notify member brokers for implementation.
This circular is issued under Section 11 (1) of the SEBI Act, 1992.
Source: SecMarx — Rationalization of Periodic Call Auction for Illiquid Scrips. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.