SEBI has permitted introduction of Call Auction in Pre-Open Session. NSE and BSE have decided to introduce call auction in pre open session with effect from October 18, 2010.
Call Auction in Pre-Open Session:
In a Call Auction market, orders are gathered for execution for a predetermined time span and executed at “Open Price”, which will be determined by the Exchanges based on the principle of demand and supply mechanism.
The pre-open session shall be for a duration of 15 minutes starting 09:00 am.
The Normal market for Equity and Derivative segment will begin at 09:15 am and carry on up to 03:30 pm. Currency segment will start at 09:00 am as usual.
The call auction in pre-open session will be introduced initially for securities forming part of indices- CNX Nifty and Sensex.
Limit orders will get priority over market orders at the time of execution of trades in the pre-open session.
All orders shall be disclosed in full quantity.
Unexecuted, eligible orders will be moved to Normal market.
Uniform price band of 20% will be applicable to all eligible stocks during the pre-open session.