NEW DELHI: Leading bourses BSE and NSE will conduct periodic call auction for illiquid securities of nearly 400 companies with effect from January 9.

While BSE would hold periodic call auction of 335 illiquid stocks, NSE would do the same for 31 securities.

On BSE, the list of scrips which will be traded in periodic call auction would be based on trading activity during the period July 2016-December 2016. “The list of illiquid securities is based on trading activity during the period October 2016-December 2016,” the NSE said in a circular. Illiquid stocks are those that cannot be sold easily because they see limited trading. They pose higher risks to investors as it is difficult to find buyers for them compared to frequently traded shares. Among the illiquid stocks listed by both the exchanges include Blue Chip India, Gujarat Lease Financing, Jaihind Projects, Khaitan India, Pradip Overseas and Surana Corporation. “Members are advised to exercise additional due diligence while trading in these securities either on own account or on behalf of their clients,” the bourses said in similarly-worded circulars. As per Sebi directions, the exchanges are required to draw up a list of illiquid securities, based on a criteria jointly agreed with market regulator and make it available to the trading members. — PTI