Sebi allows call auction on SEs

The new mechanism, known as pre-open session call auction, will last for a duration of 15 minutes and will be introduced on a pilot basis by the BSE and NSE, Sebi said in a circular.
In the first 15 minutes, investors can place orders for eight minutes on the basis of which exchanges will determine the rates at which trading will happen.

In the next seven minutes, the exchanges will execute the orders at identified rates. A total of 50 companies are listed on the Nifty, while 30 are on the Sensex.

In a call auction, 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.

At some point in time, the orders collected are matched to form contracts.

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