Periodic Call Auction session for illiquid securities
SEBI vide its circular no. CIR /MRD/ DP/38/2013 dated December 19, 2013 had rationalised criteria for identifying Illiquid Scrips which shall trade in Periodic Call Auction and had provided the following criteria for identifying illiquid securities:
(1) Average daily turnover of less than Rs. 2 lakhs calculated for previous two quarters; and
(2) The scrip is classified as illiquid at all exchanges where it is traded
Further, Scrip will be moved out from periodic call auction if the following exclusion criteria’s are met:
Scrips with average market capitalization more than Rs.10Cr.
OR
Scrips where company is paying dividend in at least two out of last three years.
OR
Scrips where company is profitable in at least 2 out of last 3 years, and not more than 20% of promoters shareholding is pledged in the latest quarter and book value is 3
times or more than the face value.