https://v2.webnotes.in/tags/illiquid/Recent content in Illiquid on WebNotesHugoen-INWed, 20 May 2026 00:00:00 +0000https://v2.webnotes.in/illiquid-stocks-sebi-rules/Wed, 20 May 2026 00:00:00 +0000https://v2.webnotes.in/illiquid-stocks-sebi-rules/<p>For <strong>illiquid stocks</strong>, SEBI / NSE / BSE apply a layered framework of trading restrictions:</p> <table> <thead> <tr> <th>Restriction</th> <th>When</th> </tr> </thead> <tbody> <tr> <td>Periodic Call Auction</td> <td>If liquidity falls below threshold</td> </tr> <tr> <td>T2T segment</td> <td>If specific criteria met</td> </tr> <tr> <td>100% upfront margin</td> <td>For surveillance scrips</td> </tr> <tr> <td>Tighter price band</td> <td>For specific cases</td> </tr> <tr> <td>Lower derivative liquidity</td> <td>If futures available</td> </tr> </tbody> </table> <h2 id="criteria-for-illiquid">Criteria for &ldquo;illiquid&rdquo;</h2> <ul> <li><strong>Trading days per month</strong> below threshold.</li> <li><strong>Total turnover</strong> very low.</li> <li><strong>Number of unique traders</strong> small.</li> <li><strong>Spread</strong> consistently wide.</li> </ul> <p>The exchange uses statistical thresholds; specifics published in SEBI / NSE / BSE circulars.</p>