NSEL liberalises e-series auction guidelines

As against at least three bids required to be received by the exchange under existing norms, the new norms will allow even a single bid to be processed for evaluation

National Spot Exchange Ltd (NSEL) has liberalised e-series auction norms to accommodate more bids. Against at least three bids required to be received by the exchange under existing norms, the new norms will allow even a single bid to be processed for evaluation.

Saji Cherian, managing director and chief executive of NSEL, said, “In case the base price for allocation is higher than the polled price and the volume weighted average of the bids received, non-serious and deep discount bids shall not impact the allocation, as the polled price will act as the cut-off/base for allocation.”

It was seen the cut-off time was a major barrier to accepting competitive bids. Under the current structure, the cut-off time for bids is 120 minutes prior to the scheduled timing of the international benchmark. Now, it has been modified to 60 minutes prior to the scheduled timing. In effect, the processing time for NSEL has been reduced.

Cherian said, “The existing parameters prevented the exchange to accept even worthy bids minutes after a cut-off time. Such reduction shall make available more time to bidders to make bidding price decisions, enhancing the chances of receiving more bids.”

The Forward Markets Commission has already approved these changes.