Description
BSE announces list of 49 securities to be traded under periodic call auction mechanism effective October 10, 2025 due to illiquidity.
Summary
BSE has announced that 49 securities will be shortlisted for trading under the periodic call auction mechanism effective October 10, 2025. This mechanism is applied to illiquid scrips to ensure orderly price discovery while managing risks associated with low trading volumes. The securities include companies from various sectors including finance, manufacturing, textiles, and trading.
Key Points
- 49 securities identified for periodic call auction mechanism
- Effective date: October 10, 2025
- Includes companies from diverse sectors: finance, leasing, manufacturing, bio-sciences, textiles, steel, and trading
- Securities range from established companies to smaller entities with limited liquidity
- All securities listed with their Scrip Code and ISIN numbers for identification
Regulatory Changes
The periodic call auction mechanism represents a modification to normal continuous trading for these securities. Under this system:
- Trading occurs at specific predetermined intervals rather than continuously throughout the trading session
- Helps in better price discovery for illiquid securities
- Reduces volatility and manipulation risks in low-volume stocks
- Orders are accumulated during a collection period and matched at a single equilibrium price
Compliance Requirements
For brokers and market participants:
- Update trading systems to reflect the periodic call auction status for these 49 securities
- Inform clients holding these securities about the change in trading mechanism
- Adjust order placement strategies to align with periodic auction timings
- Ensure proper risk disclosures to clients regarding reduced liquidity
Important Dates
- October 10, 2025: Effective date for periodic call auction mechanism for all 49 listed securities
Impact Assessment
Market Impact:
- Trading frequency for these securities will be reduced compared to continuous trading
- May result in wider bid-ask spreads during non-auction periods
- Could impact exit opportunities for existing shareholders
Operational Impact:
- Investors must adjust to periodic trading windows instead of continuous access
- Order placement timing becomes critical for execution
- Price discovery limited to auction sessions
Investor Impact:
- Reduced liquidity may affect portfolio rebalancing strategies
- Longer holding periods may be required
- Potential difficulty in immediate exits during adverse market conditions
Positive Aspects:
- Better price discovery through consolidated order matching
- Reduced manipulation risks in illiquid stocks
- Fairer execution through single equilibrium price determination
List of Affected Securities
The 49 securities include: Aadi Industries, Abhinav Leasing & Finance, Abhishek Infraventures, Aditya Ispat, Agarwal Fortune India, Amarnath Securities, Amerise Biosciences, Aravali Securities & Finance, Arcee Industries, Ashiana Agro Industries, Ashram Online.Com, Atharv Enterprises, AVI Polymers, BCL Enterprises, Beeyu Overseas, Boston Bio Systems, Brawn Biotech, Brijlaxmi Leasing & Finance, Brilliant Portfolios, CJ Gelatine Products, CHD Chemicals, Cindrella Financial Services, Citi Port Financial Services, Classic Leasing & Finance, Continental Controls, Coral Newsprints, Decorous Investment & Trading Co, Delta Industrial Resources, Devine Impex, Dhanvantri Jeevan Rekha, Dharani Finance, Ekam Leasing & Finance Company, Encode Packaging India, Filmcity Media, Fraser and Company, Gaekwar Mills, Galada Finance, Gallops Enterprise, Gold Coin Health Foods, Gopal Iron & Steels Company Gujarat, Goyal Associates, Grandma Trading & Agencies, Gujarat Credit Corporation, Gujarat Winding Systems, Haria Apparels, Hasti Finance, Heera Ispat, Hemo Organic, and Hindustan Bio Sciences.
Impact Justification
Affects trading mechanism for 49 illiquid securities, limiting continuous trading but ensuring price discovery through periodic auctions. Impacts liquidity and trading flexibility for existing shareholders.