Description
BSE announces inclusion of 51 securities in periodic call auction mechanism effective January 09, 2026 to improve price discovery for illiquid stocks.
Summary
BSE has announced that 51 securities will be shortlisted for periodic call auction mechanism effective January 09, 2026. This mechanism is designed to improve price discovery and reduce volatility for illiquid securities that have limited trading activity. The periodic call auction allows orders to accumulate over a period before being matched at a single equilibrium price.
Key Points
- 51 securities will enter periodic call auction mechanism from January 09, 2026
- Affected securities include companies from various sectors including finance, textiles, chemicals, biotech, and manufacturing
- Securities range from established companies like Gaekwar Mills Ltd to smaller entities
- All securities have been assigned specific ISIN numbers for identification
- The measure aims to enhance price discovery for stocks with low trading volumes
Regulatory Changes
The periodic call auction mechanism will be implemented for the listed securities, changing their trading methodology from continuous trading to auction-based trading. This is a surveillance measure applied to illiquid scrips to ensure fair price discovery and prevent price manipulation.
Compliance Requirements
- Trading members must ensure their systems are updated to handle periodic call auction mechanism for these securities
- Investors should be aware that these securities will trade only during specific call auction sessions
- Order placement and execution will follow call auction rules rather than continuous trading
- Market participants should familiarize themselves with call auction timings and procedures
Important Dates
- Effective Date: January 09, 2026 - Periodic call auction mechanism becomes applicable for all 51 listed securities
- Circular Date: January 06, 2026
Impact Assessment
Trading Impact: The 51 affected securities will move from continuous trading to periodic call auction sessions, which may reduce trading frequency but could improve price discovery. Investors holding these securities should expect limited liquidity and specific trading windows.
Market Impact: Limited broader market impact as these are already illiquid securities with low trading volumes. The measure is protective in nature, aimed at ensuring fair price formation.
Investor Impact: Shareholders of affected companies will need to place orders during call auction sessions only. This may require adjustment to trading strategies and timing of transactions.
List of Affected Securities
The circular includes 51 securities (list appears truncated at entry 51 in the source document) including:
- Abhinav Leasing & Finance Ltd (538952)
- Abhishek Infraventures Ltd (539544)
- Aditya Ispat Ltd (513513)
- Agarwal Fortune India Ltd (530765)
- Agio Paper & Industries Ltd (516020)
[Continuing through all 50+ listed companies with their respective scrip codes and ISIN numbers]
Impact Justification
Affects trading mechanism for 51 illiquid securities, improving price discovery but with limited market-wide impact due to low liquidity of affected stocks.