Due to new SEBI guidelines, approximately 2100 stocks were moved to illiquid stocks category, effective 8th April 2013.
Circular prepared by SEBI for illiquid stocks.
Link: Click Here
How to trade an illiquid stock:
1) 6 periodic call auction sessions (1 hour each) would be held daily.
First session will start at 9.30 AM, and the last would be at 2.30 PM. From a session of 1 hours, 45 minutes will be for order entry, order modification and order cancellation, 8 minutes will be for order matching and trade confirmation and remaining 7 minutes shall be a buffer period for closing the current session and facilitating the transition to next session.
2) To trade, one can place the order between 9.30 AM and 10.15 AM, and respectively going ahead for every session. User won't be allowed to place any orders from 10.15 AM to 10.30 AM. This time period will be used for settling trades. If a matching trade is found between yours and someone else's order (buy and sell), that will be settled in 15 mins period.
3) If there is no match found for your order, in that session, your order will be cancelled. It wont be carry forwarded to next session. Hence, you will have to place your order again, if it doesn't get executed, in a particular session.
Because of the above rule, one cannot place the order in the morning and leave, like what it was, before. One has to keep an eye on a particular session, to get his order executed.
Among all the stocks suggested on this site, Photoquip India, Money Matters Financial Services, Gulshan Polyols and Cravatex are trading in this category.
I have tried my best to explain trading on illiquid stocks categorized by SEBI.
Still, if someone is unclear, please feel free to post your queries here.
Dude It is crystal clear now thanks.
ReplyDeleteThanks for explaining in a very simple manners.
ReplyDeleteAnother promoter buying report from Ajanta Pharma even at price more than 800…..
ReplyDeleteIts practically unbelievable……
A day before, a notice was given that promoters pledged 3 Lakh shares….
As far as I think, that was just done, to get few more money to buy few more shares from open market….
They will look to complete 75% holding within 1-2 quarters….
Money Matters has been on a role since last few days....
ReplyDeleteIf I am not wrong, I suggested this stock, very few days ago, when it was trading around 110..... and suddenly it has shoot up to 175 odd levels....
This journey has been seen just a week before the results....It indicates that results are going to be awesome, as far as I think....
People who invested around 100 can take their own decision, about profit booking...
I can suggest anything only once the results are out...
Lots of people have asked me regarding what to do with Ajanta Pharma now?
ReplyDeleteWell thats a very tough question...
When I first suggested this stock, it was trading at 415 levels....
http://fundamentalstockideas.in/ajanta-pharma-rewriting-the-future-of-india-in-pharma-industry/
From that, it has appreciated around 120% which is not bad....
I gave a target of 800-1000 with time frame of about 2 years....
It has already reached those levels in 9 months only....
As we have seen recently, promoters have bought lots of shares from open market...around 815-900 levels..... which is impressive considering the future of the company...
As far as what I have learnt, Promoters never buy their own shares from open market...based on previous results....
Hence, as far as I understand, there is something that is going to happen in future, because of which they are buying aggressively at this price also.....
Those who bought with a target that I gave, can book profits if they want..... but as far as I am concerned.... I am planning to wait further.... as promoters are still buying...
One of the best option in these cases, that I have learnt from my brother is to book profit for the initial investment amount, and leave the rest as it is for life time....
For eg., If you invested in Ajanta shares worth Rs 10000 in Sept 12, as suggested here, that has been appreciated to Rs 22000 today...... so, selling shares worth 10000 Rs is not a bad option, and let your remaining shares worth 12000 Rs as it is, for life time.....
So, you have got your initial investment amount back, and let the profit multiply/divide in itself.... which should not bother you much.... :-)
Cravatex - Board to consider Dividend
ReplyDeleteCravatex Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on May 28, 2013, inter alia, to approve the audited financial results of the Company for the year ended March 31, 2013 and consider recommendation of dividend, if any.