MUMBAI, February 14: The Bombay Stock Exchange has amended the byelaws relating to auctions on the exchange and has also decided to conduct auction sessions during the trading hours from February 16.``Auctions conducted after trading hours continue till late in the evening causing great deal of inconvenience to the brokers,'' said a BSE official. As per the revamped time-table, the auctions for short falls in the demat segment will be conducted from Monday to Friday, between 10.30 am to 11.10 am. The auction of shares offered on account of objection will be conducted on Monday between 12 pm and 1.30 pm.
However, in case of the physical segment, the auction will be conducted on Monday and the auction of bad delivery shares will be conducted on Friday between 2.45 and 5.30 pm. The amendment in the byelaw 190 A2 as resolved by the governing board has been approved by the Securities and Exchange Board of India, vide its letter dated January 12.
As per the amended byelaw, if any securities offered at anauction is not bought pursuant to the auction tender, either due to absence of auction offers or insufficient number of securities being offered, the stocks will be closed out.
This close-out would be either at the highest price recorded in that scrip on the exchange in the settlement in which the ``concerned contract'' has been entered into up to the day prior to the day of the auction or close-out.
The option to auction the stocks at 20 per cent above the official closing price on the day prior to the day on which the auction offers are called for could also be considered, but subject to the directive from the governing board or the executive director.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
