NSE may reintroduce pre-opening session

The National Stock Exchange (NSE) is considering the reintroduction of the pre-opening session for order matching after rectifying loopholes that had led to its discontinuation earlier.

Pre-opening session has a specified duration and, as the name suggests, takes place before trading for the day commences. A questionnaire sent to the exchange did not elicit any response.

NSE used to have a pre-opening session where weighted average price of bids placed by traders would form the basis for opening prices of those stocks. However, the exchange discontinued the practice, and brokers feel this could have been triggered by the feeling that some players were availing of the facility to manipulate opening prices by making artificially high or low bids.

Read more in The Economic Times