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CIRCULAR
BSE SME EXCHANGE
BSE Ltd.
DATE: 01-12-2014
To: All Trading Members of the BSE Ltd.
SUBJECT: Market Making on BSE SME Platform
Reference: BSE Circular dated 9th March 2012
SEBI, vide its Circular No. CIR/MRD/DP/14/2010 dated April 26, 2010 has issued ‘Guidelines for Market Makers on Small and Medium Enterprise (SME) Exchange/separate platform of existing Exchange having nationwide terminal’. As per the circular, market making has been made mandatory in respect of all scrips listed and traded on SME Exchange. Accordingly, BSE has issued circular dated 9th March 2012 and as per the said circular following spread have been defined for the companies on the BSE SME Platform.
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Sr. No.
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Market Price Slab (in Rs.)
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Proposed spread (in % to sale price)
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1
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Up to 50
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9
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2
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50 to 75
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8
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3
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75 to 100
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6
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4
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Above 100
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5
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Further to the said circular, we would like to inform you that hence forth the spread percentage will be based on the closing price of the last trading day based on the slab in which the Closing price falls in case of all the companies listed and traded on SME Platform. This will be applicable for the whole trading day irrespective of the price and next day spread obligation will again be on the basis of closing price.
Eg. If XX SME Scrip listed at Rs.74, then according to price slab of Rs.50 to Rs.75, applicable spread obligation for the whole day for Market Makers (MM) shall be 8 percent. However, if the closing price of this scrip at the end of day is discovered as Rs.76, then spread obligation for Market Makers (MM) applicable for the next trading day shall be based on the new price slab of Rs.75 to Rs.100, which is 6 percent.
This is an Exchange notice informing all the Members and market intermediaries about the Market Making (MM) on the BSE SME Exchange.
In case of any clarification on the subject matter of the Notice, please contact:
Mr. Parth Shah on 022-2272 8893 (parth.shah@bseindia.com )
Mr. Abhishek Pandey on 022-2272 8424 (abhishek.pandey@bseindia.com)
Ajay Thakur
Head
BSE SME Exchange
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