Sebi extends pre-open call auction to all scrips

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 calculated and charged by the exchange and collected from trading members on a daily basis," Sebi said.

As per the provisions, trading members may recover the penalty from clients.

"The penalty so collected shall be deposited to Investor Protection Fund," it said.

ALSO READ

Weekly review: Rupee plunges to one-month low against US dollar

Weekly review: Market flies high on smart rally, Sensex, Nifty at 28-mth peak

Dena Bank net profit halves to Rs 125.67 crore

J K Cement March quarter net profit down 30% at Rs 56 cr