We refer to SEBI Circular CIR/MRD/DP/6/2013 dated February 14, 2013 on Introduction of Periodic Call Auction for Illiquid Scrips and Extension of Pre-open Session to all Scrips. In Periodic call auction, stock exchanges identifies illiquid scrips at the beginning of every quarter and move such scrips to periodic call auction.

In the above Circular SEBI had notified penalty for certain trades executed in Call auction session. The same is appended below

In the event where maximum of buy price entered by a client (on PAN basis) is equal to or higher than the minimum sell price entered by that client and if the same results into trades, a penalty shall be imposed on such trades. The penalty shall be calculated and charged by the exchange and collected from trading members on a daily basis. Trading members may recover such penalty from clients. The penalty so collected shall be deposited to Investor Protection Fund. Penalty for each such instance per session will be higher of the following:
  • 0.50% of the trade value for sale and 0.50% of trade value for the buy, resulting in 1% penalty for the client on PAN basis.
(OR)
  • 2500 /- for the buy trade and 2500 /- for the sell trade, resulting in penalty of 5000/- for the client on PAN Basis.

As quoted in the above SEBI Circular, ICICI Securities would recover penalty charged to ICICI Securities, for such inappropriate client dealings in illiquid scrip from respective clients.