In Limited Physical market

Answer 1

Limited Physical Market - Salient Features

• Trading is conducted in the Odd Lot market (market type 'O') with Book Type 'OL' and series 'BT'.
• Order quantities should not exceed 500 shares.
• 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.
• Trading hours are the same as that of the normal market and order entry during the pre-open and post-close sessions are not allowed.
• Settlement for all trades would be done on a trade-for-trade basis and delivery obligations arise out of each trade.
• 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.
• All Good-till-cancelled (GTC)/Good-till-date (GTD) orders placed and remaining as outstanding orders in this segment at the close of market hours shall remain available for next trading day. All orders in this segment, including GTC/GTD orders, will be purged on the last day of the settlement.
• 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.

I found this information on NSE website. I think physical markets if any will have similar features around the world.

Siddalingesh Zalaki

Equity Analyst

Sanlam Equity Analytics India