Market News
The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have decided to implement ‘pre-market call auctions’ which is a special 15-minute trading window starting at 9:00 am from October 18.
This also means that all other segments, including derivatives and non-index stocks, will trade only at 9:15 am.
National Stock Exchange and Bombay Stock Exchange will start the 15-minute pre-open session call auction from October 18.
In July this year, capital market regulator Securities and Exchange Board of India had given its green signal for the introduction of pre-open session call auction on the bourses.
In a call auction practice, participants indicate their willingness to buy or sell units of a security by placing an order for a number of units at the prevailing price before the opening of trade. The mechanism, known as 'pre-open session call auction', will last for a duration of 15 minutes (from 9:00 am to 9:15 am) and will be introduced on a pilot basis by the BSE and NSE. So how does this work? Here is the break-up of these 15 minutes. At 9:00 am, investors will be able to place their ‘buy’ and ‘sell’ orders for Nifty or Sensex stocks for a period of seven minutes. During these seven minutes, no trades will be executed.
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