Description
BSE announces list of 49 securities to be moved to periodic call auction mechanism effective October 10, 2025 due to illiquidity.
Summary
BSE has announced that 49 securities will be moved to the periodic call auction mechanism effective October 10, 2025, due to their classification as illiquid scrips. These securities will no longer trade in continuous market sessions and will only be available for trading during designated periodic call auction sessions.
Key Points
- 49 securities identified as illiquid will be moved to periodic call auction mechanism
- Effective date: October 10, 2025
- Securities span various sectors including finance, manufacturing, trading, and biotech
- All securities have BSE scrip codes and valid ISINs listed in the circular
- This is a regulatory measure to improve price discovery and reduce volatility in illiquid securities
Regulatory Changes
Securities classified as illiquid based on BSE’s surveillance criteria will be shifted from regular trading sessions to periodic call auction mechanism. This change restricts trading to specific auction sessions rather than continuous trading throughout the day.
Compliance Requirements
- Trading members must inform their clients holding these securities about the change in trading mechanism
- Orders for these securities can only be placed during periodic call auction sessions
- Settlement and clearing procedures will follow periodic call auction framework
- Investors should adjust their trading strategies accordingly for these scrips
Important Dates
- Effective Date: October 10, 2025 - All 49 securities will begin trading exclusively in periodic call auction mechanism
- Announcement Date: October 7, 2025
Impact Assessment
Market Impact: Trading in these 49 securities will become more restrictive with limited trading windows through periodic call auction sessions. This may further reduce liquidity but is intended to improve price discovery and prevent price manipulation.
Investor Impact: Existing investors in these securities will face reduced trading flexibility with orders executable only during auction sessions. Entry and exit from positions will require more planning.
Operational Impact: Brokers and trading members need to update their systems and client communication regarding the new trading mechanism for these scrips. Order placement and execution processes will differ from regular market operations.
List of Affected Securities (Partial)
- Aadi Industries Ltd (530027)
- Abhinav Leasing & Finance Ltd (538952)
- Abhishek Infraventures Ltd (539544)
- Aditya Ispat Ltd (513513)
- Agarwal Fortune India Ltd (530765)
[Total of 49 securities listed in Annexure I of the circular]
Impact Justification
Affects trading mechanism for 49 illiquid securities, limiting continuous trading to periodic call auction sessions. Moderate impact on liquidity and price discovery for these specific scrips.