Periodic Call Auction was formed by the Securities and Exchange Board of India (SEBI). Its primary motive is to restrain volatility present in illiquid stocks. According to NSE, trading in illiquid scrips in the equity market can be conducted only through periodic call auction sessions.
The Secondary Market Advisory Committee (SMAC) suggested the introduction of trading through a PCA for illiquid shares in the equity market, extending the call auction in the pre-open session for all the shares.
According to SEBI, illiquid stocks are-
Usually, there are six call auction sessions run in a day that starts from 9.30 AM of 1 hour each. The window of call auction for trading is like the pre-market session conducted for equity stocks.
Also, there is a 45-minute window provided for order placement, specific modifications, and cancellation. Note that all the orders are accepted and matched in the next 8 minutes, and trades are confirmed. Also, there will be a 7-minute buffer period before the subsequent call auction session begin.
|
Session Number |
Start Time- Order Placement |
Order Matching |
Buffer Period |
|
1 |
9.30 AM- 10.15 AM |
10.15 AM- 10.23 AM |
10.24 AM to 10.30 AM |
|
2 |
10.30 AM- 11.15 AM |
11.15 AM- 11.23 AM |
11.24 AM to 11.30 AM |
|
3 |
11.30 AM- 12.15 PM |
12.15 PM- 12.23 PM |
12.24 PM to 12.30 PM |
|
4 |
12.30 PM- 1.15 PM |
1.15 PM- 1.23 PM |
1.24 PM to 1.30 PM |
|
5 |
1.30 PM- 2.15 PM |
2.15 PM- 2.23 PM |
2.24 M to 2.30 PM |
|
6 |
2.30 PM- 3.15 PM |
3.15 PM- 3.23 PM |
3.24 PM to 3.30 PM |
If you intend to buy/sell illiquid stocks that are on periodic call auction, you would be required to place your orders in the first 45 minutes. Note that you can buy/sell on the basis of your order if it matches in the next 8 minutes.