Technical view by Nooresh

SEBI – Rationalization of Periodic Call Auction for Illiquid Scrips.

We had been writing about how Period Call Auction for Illiquid Scrips was anti investor in this article 


Even had put up my view when asked by Economic Times in this article


Many articles, protests, complaints and finally SEBI has almost pulled out the periodic call auction.


Can see the full document here 


The major clause modification which makes most of the stocks from illiquid to liquid are as below.


b) Of the scrips identified as per above criteria, scrips which satisfy
any of the following conditions shall be excluded.


Scrips with average market capitalization more than Rs.10Cr.
ii. Scrips where company is paying dividend in at least two out of
last three years.
iii. 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.


Can check the full document 


Rationalization of Periodic Call Auction for Illiquid Scrips.

Hopefully now majority of the 2300 stocks come back into the liquid segment and out of PCAS jail.

Book Recommendation


Continuing with the book recommendations as in previous posts and to get some e vouchers as an affiliate below are a couple of books am looking forward to read. Already ordered the checklist manifesto by Atul Gawande and next in list is Thinking Fast and Slow by Daniel Kahnemann



Thanks and Regards,

Nooresh Merani

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Article by Nooresh Merani

Nooresh has written 2531 articles.

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{ 3 comments… add one }
  • sanjay December 20, 2013, 13:00

    Hi Nooresh,

    Hopefully better sense prevail. Next quarter i feel lot of midcaps n PCAS stock getting active.. Today i see spurt in volumes and thanks to people like you who have relentlessly written n educated masses on stock markets.


  • jitesh December 21, 2013, 12:08

    Its gr8 news…..Finally we will see some action in a lot of mid and small caps that were put into this category and with the onset of a bull market, we will see most of these stocks flare up from jan 1 2014….Cheers….Investors with a 3 year investment horizon can look at Om metals and Infra which will definitely come out from this system as per revised criteria and a potential multi bagger .

  • Ravi December 21, 2013, 23:04

    Good news. Stocks to watch out when they come out of PCAS with good dividend paying track record (7 to 8%) as per SEBI circular:-

    Dynemic Product

    Thank you Nooresh Sir.


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