New Delhi: Leading stock exchange BSE has extended till April 29 the online bidding process for selection of 'market maker' for companies (belonging to XD group) exclusively listed on its platforms. The bidding process, which begun from April 4, was schedule to close on April 20. Now, the "online bidding process for selection of market maker for market making on BSE Exclusive securities in BSE iBBS (Internet Based Book Building System) shall be extended till April 29, 2016," the exchange said in a circular.
A market maker is a broker-dealer firm that accepts the risk of holding a certain number of shares of a particular security in order to facilitate trading in that security. Each market maker competes for customer order flow by displaying buy and sell quotations for a guaranteed number of shares.
Once an order is received, the market maker immediately sells from its own inventory or seeks an offsetting order and the process takes place in mere seconds. The exchange further said that 535 securities are eligible for market making. The eligible securities belong to 'XD' group, which is a new sub-group implemented by BSE for companies listed exclusively on it.
It further said "securities eligible for market making are subject to change from time to time depending on listing and surveillance actions." Securities that have a six monthly average market-cap of over Rs 100 crore but less than Rs 1,000 crore and have more than 1,000 public shareholders are classified in 'XC' group and the balance securities are classified in 'XD' sub-segment. "Based on the bids placed in this bidding system eligible Market Makers would be selected for performing Market Making in the respective XD Scrip, at a later stage,"
