Sebi extends pre-open call auction to all companies shares on stock exchanges
price bands for such sessions would be applicable in the normal market, the guidelines said.
"All orders shall be checked for margin sufficiency at order level for inclusion in pre-open session," it added.
As per the norms for periodic call auctions for illiquid scrips, a scrip would be illiquid if its average daily trading volume in a quarter is less than 10,000, the average daily number of trades is less than 50 in a quarter and if it is classified as illiquid at all exchanges where it is traded.
The illiquid scrips are required to be identified by the stock exchanges at the beginning of every quarter.
These shares can exit from the call auction mechanism to the normal trading session provided they have remained in session for at least two quarters and are not illiquid.
Further, a notice of two trading days would have to be submitted with the market for entry and exit of scrips.
According to the norms, periodic call auction have to be conducted for one hour each throughout the trading hours with the first session starting at 9:30 am.
regulator has fixed the the maximum price band of 20 per cent on the scrips.
However, exchanges may reduce the price bands uniformly based on surveillance related concerns, Sebi added.
The regulator said penalties could be imposed on trades where "maximum of buy price entered by a client is equal to or higher than the minimum sell price entered by that client and if the same results into trades".
"The penalty shall be
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