Auction market is a special market where only members of the exchange can participate as fresh sellers and sell shares which are short delivered. The Auction market is conducted every day between 2:00 and 2:45 pm. To make sure that there is no conflict of interest, the exchange doesn’t allow the member whose client has defaulted in delivering to take part in the Auction market.
Periodic call auction sessions of one hour each shall be conducted daily throughout the trading
hours with the first session starting at 9:30 am and last session ending at 3.30 pm as per the
details given below:
Session No. Start Time End Time
Session 1 9:30 am 10:30 am
Session 2 10:30 am 11:30 am
Session 3 11:30 am 12:30 pm
Session 4 12:30 pm 1:30 pm
Session 5 1:30 pm 2:30 pm
Session 6 2:30 pm 3:30 pm
Hi Reshma,
A call auction market is different from the Normal market. In a call auction, orders are entered into the system but are not executed till the end of the order entry period after which the order matching happens where orders that match result into a trade.The “Call Auction” mechanism differs from normal markets in the sense that in the “Call Auction” session, the orders are matched on a multi lateral method as against the normal market where orders are matched on a constant bilateral method to determine trades… In the Indian markets, the “Call Auction” method is used in the Pre Open session and also for trading in Illiquid scrips.Each session is for an hour, where the first 45 minutes is for order entry, the next 15 minutes for order matching,trade execution and buffer to move to the next session
Let me give you an example for better understanding. Assume you have a property in a prime locality which you wish to sell. Now its fairly easy for you to find a buyer for this property and all the quotes you receive for this property will be around the market price and you could possibly sell it to any prospective buyer.
Assume your land was in some remote area and did not attract a lot of interest. You’d not be sure of the price you’ve to sell it at. What you’d do is obtain quotes from different people and then sell it to the one offering the best price. By doing this you are discovering the price of the asset, the land in your case. This is a very crude example but I hope you got the point.
The main purpose of conducting the “Call Auction” is to obtain Price discovery. A stock like Reliance, TATA Steel trades in the normal market because the markets determine the price of the stock, but for an illiquid scrip like Accurate Trans [BSE: 530513] price discovery is difficult. So to ensure that there is no room for manipulation what the Exchanges do it, they collect all buy and sell orders for the first 45 minutes, match the orders and execute trades in the next 8 minutes and the other 7 minutes are buffer to move from one Call auction period to another.
Hope this helps !
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To see what scrips get classified as “Illiquid scrips” and more you can read: http://www.bseindia.com/download/markets/equity/FAQ-Periodic%20Call%20Auction%20Session.pdf
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I want to buy Shyam telecom … a scrip listed on both the stock exchanges and traded in call auction . i did place an order today but not being accepted . PLEASE GUIDE . @ShubhS9
BEING CALL AUCTION scrip ,i sensed order can be placed from 9.30 to 10 …10.30 to 11 …11.30 to 12 etc etc . i could place order at 9.32 and just now at 10.34 but when i attempted at 10.21 and 10.27 it rejected.
You can place, cancel, modify orders only for the first 45 minutes of the hour. You can learn more on this here.
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Is it possible to place order as Minimum purchase this much or nil on any scrip ? i am asking because in low volume scrip like Shaym telecom if i place a buy order for say 1000 shares and eod get only 5 , it will incur fixed demat charges.
You can place order for any quantity you want but how much quantity gets executed is up to supply at your price.
Also, DP charges aren’t applicable when your buy shares, these are applicable only when you sell shares from your Demat account.
Invalid marketwatch or instrument…is the ERROR appearing on trading screen /kite today on 31 December when i attempt to get the symbol on screen …SHYAM TELECOM (nse) wherein i did some delivery transactions yesterday on 30 December.
At NSE website the symbol is active.
Will have this checked.