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With the changing market conditions, exchanges have also been continuously
revising the process so that fair market practices is been ensured. One of the new
initiatives by the regulators is to introduce ³pre market call option´, this feature
will help market to determine fair opening price of a security and indices.
How does this function? There will be 15 minutes pre market starting from 9.00
am till 9.15 am window everyday in which price discovery will happen. This is
done because at the start of market movements are very choppy and volatile.
Trades are rushed in to the system, at times erroneous price and quantity is
witnessed which can immediately impact the calculation of indices and raised the
VAR margin of a particular security. It is also seen that such orders are push
intentionally to manipulate market and stock specific sentiments. So both NSE and
BSE have introduced this mechanism to curb these irregularities and enhance
healthy market movements. This would also change the market dynamics as a
whole.

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The price of the script will be equilibrium price based on demand and supply of the
security and not based on price first trade of security. It allows to react the over
night news and to show reflection in open market which makes market more
efficient and eliminate volatility in opening price of security because it tries to
price the security based on equilibrium forces of demand and supply.

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1.| Ñuration of the session will be 15 minutes i.e. 9 AM to 9.15AM

2.| First 8 minute is order collection period in that you can modify and even
cancel your order.
3.| System driven random closure anytime between 7 & 8 minute.
4.| Next 4 minute is order matching and trade confirmation.
5.| Next 3 minutes is buffer time period for transition to normal market session.

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1.| Limit price order

Buy or sell at specified price.
2.| Market price order
Price is based on market price of stock.

  
  
 

1.| Ice berg order

A large single order that has been divided into small lots.
2.| Ñ ( Ñisclosed uantity)
3.| Immediate or cancel order

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1.| Limit price order or market price order is considered for determining EP.
2.| Indicative equilibrium is point at which maximum quantity is matching.
3.| If there is more than one price at which same price match able quantity, then
indicative equilibrium price will be the price at which imbalance quantity is
minimum.
4.| If there is more than one price with match able quantity and imbalance
quantity then indicative price will be the price which is nearer to previous
day closing price.
5.| If there is no limit order its pre open price will not discovered.
6.| If there is market order for both buy and sell on both side and then it will be
matched at previous day closing price.
7.| If there is no price discovered in pre open session, the price for the first trade
in the normal market is opening price.

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1.| Match-able buy limit order against match-able sell limit order.
2.| Imbalance buy and sell limit order eligible against market order.
3.| Market order against market order.
4.| Unmatched order will be carried to normal market with their original price
stamp, limit order at limit price and market order at equilibrium price.

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1.| Current risk management system will remain active.
2.| All order shall be validated for adequate margin.
3.| Only that order which satisfy margin requirement can participate
otherwise it rejected.
4.| All security has uniform price bond of 20%.

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