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Equity Market

Market Types in Equity Segment

Posted by NIFM
The Capital Market system has four types of market: 1.      Normal Market : Normal market consists of various book types in which orders are segregated as Regular Lot Orders, Special Term Orders, and Stop Loss Orders depending on the order attributes. 2.      Auction Market : In the auction market, auctions are initiated by the exchange on behalf of trading members for settlement related reasons. The main reasons are shortages, bad deliveries and objections. There are three types of participants in the auction market. (A)   Initiator: The Party who initiates the auction process is called an initiator. (B)   Competitor: The party who enters on the same side as of the initiator is called a competitor (C)   Solicitor: The party who enters on the opposite side as of the initiator is called a solicitor. 3.      Odd Lot Market : The odd lot market facility is used for the Limited Physical Market and for the Block Trades Session. Features of Limited Physical Market (A)   Trading is conducted in the Odd Lot market (market type ‘O’) with Book type ‘OL’ and series ‘BT’ (B)   Order Quantities should not exceed 500 shares. (C)   The base price and price bands applicable in the Limited Physical Market are same as those applicable for the corresponding Normal Market on that day. (D)   Trading hours are the same as that of the normal market. (E)    Settlement for all trades is done on a trade-for-trade basis and delivery obligations arise out of each trade. (F)    Orders get matched when both the price and the quantity match in the buy and sell order. Orders with the same price and quantity match on time priority i.e. orders which have come into the system before will get matched first. (G)   Trading members are required to ensure that shares are duly registered in the name of the investor(s) before entering orders on their behalf on a trade date.   4.      Retail Debt Market : The RETDEBT market facility on the NEAT system of capital market segment is used for transactions in Retail Debt Market Session. Trading in Retail Debt Market takes place in the same manner as in equities (capital market segment). Trading members who are registered members of NSE in the capital market segment or wholesale Debt Market segment are allowed to trade in Retail Debt Market (RDM) subject to fulfilling the capital adequacy norms. The Trading Parameters for RDM segment are as below Face Value Rs. 100/- Permitted Lot Size 10 Tick Size Rs. 0.01 Operating Range +/-5% Mkt. Type Indicator D (RETDEBT) Book Type RD

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