Sebi extends pre-open call auction to all scrips
Sebi has decided to extend the pre-open call auction facility to all scrips, which would be available in all stock exchanges. Generally, in a call auction, the buyers set a maximum price at which the shares can be bought while the sellers keep a minimum price for selling the scrips. Generally, this facility conducted before start of trading session helps reduce price volatility. Sebi has also introduced periodic call auction sessions for illiquid shares in the equity market. The call auction facility for all scrips, including illiquid ones, would be effective from April 1 this year, Sebi said in a circular on Thursday. Currently, the pre-open call auction sessions are in place on pilot basis for shares on benchmark Sensex and Nifty indices. The 30-share Sensex is part of the BSE, while the 50-share Nifty is the key index of the NSE, Besides, it is also available for IPO as well as re-listed shares. According to the circular, Sebi has decided to extend the pre-open session to all other scrips in the equity market as well as introduce trading through periodic call auction for illiquid scrips in equity market.
BofA ML downgrades Dr Reddys to neutral
Bank of America-Merrill Lynch downgraded its rating on Dr Reddys Laboratories to neutral from buy, saying a slight increase in core profit estimates was being offset by a fading US drug pipeline and moderating growth. We expect multiples to be capped due to modest growth prospects, the investment bank said on Friday.
ICICI releases 11.04% of DB Realtys pledged shares
Mumbai-based real estate developer DB Realty informed the BSE on Friday that ICICI Bank UK Plc has released 11.04% of the shares pledged with the lender after DB repaid a portion of the financial facility that a group company had earlier availed. DB had earlier pledged shares representing 39.98% of the existing paid-up capital of the company, it said in the notice.
In the report Wipro out of Nifty from April 1, the second paragraph makes an erroneous mention of the term delisting. It is only a short-term withdrawal as the copy goes on to say later. The error is regretted.