The Securities and Exchange Board of India (SEBI) has decided to introduce call auction in the pre-open session in 50 index shares on the National and the Bombay stock exchanges.
“To begin with, the session shall be introduced on a pilot basis for the scrips forming part of the Sensex and the Nifty. In case of any change in the composition of Sensex and Nifty, pre-open session shall be introduced for such incoming scrips. Pre-open session shall also continue for the scips moving out of Sensex and Nifty, though they will not be reckoned for the computation of the index,” the SEBI said in a circular to the stock exchanges on Thursday.
The pre-open session will be from 9 a.m. to 9.15 a.m., out of which eight minutes will be allowed for order entry, order modification and order cancellation, four minutes for order matching and trade confirmation and three minutes to facilitate the transition from pre-open session to the normal market.
The session would be closed randomly during the last one minute of order entry.
