Background
During the call auction of the pre-open session for certain IPOs and relisted scrips, Many orders are placed at a higher price in large volumes, and a significant portion of such orders are canceled just before the closure of call auction session. This may be done to create false demand and supply and possible manipulation of the price of the scrips which is detrimental to common investors.
To curb the misuse of the call auction session, SEBI’s Working Group of Stock Exchanges and recommendations of the Secondary Market Advisory Committee has decided to modify the current provisions related to call auction session for IPO & relisted scrips and introduce additional surveillance measures at stock exchanges.
Timelines of call auction in pre-open session for IPOs and relisted scrips
| Particulars | Time | Existing timelines | Revised timelines |
|---|---|---|---|
| Order Entry Period | 9:00 am - 9:45 am * | Order entry, Modification and Cancellation | Order entry, Modification and Cancellation |
| * System driven Random closure anytime between 44th and 45th minute (during the last minute of order entry) | * System driven Random closure anytime between 35th and 45th minute (during last ten minutes of order entry) | ||
| Order Matching & trade Confirmation Period | 9:45 am* - 9:55 am | Order matching period will start immediately after completion of order collection period. | No change |
| Opening price is determined | |||
| Order matching and trade confirmation. | |||
| Buffer Period | 9:55 am - 10:00 am | Transition from pre-open to Normal market | No change |
Starting from September 17, 2024, The session shall close randomly during the last ten minutes of order entry i.e. anytime between the 35th and 45th minute of the order entry window. Such random closure shall be system-driven.
You can check the full circular here
https://nsearchives.nseindia.com/content/circulars/CMTR63747.pdf