February 12, 1993
The President/Executive Directors
of all recognised stock exchanges
Dealing in odd lots shares
As you are aware, with the spate of issues of rights shares and fully and convertible debentures in the current financial year (i.e. 1992-93), the volume of odd lot shares and debentures has reportedly increased manifold, but the secondary market for them is not that active. Consequently, the investors across the country are finding it difficult to deal in odd lot shares and debentures. Though some stock exchanges have taken steps to resolve this problem by conducting separate trading sessions for odd lot shares, it is obvious that these arrangements are not adequate to meet the needs of the investors. We, therefore, would be glad to know the efforts made by your Exchange in this regard. Please arrange to send to us at an early date the following details regarding odd lot and debentures trading sessions at your Exchange:
1. Frequency of such sessions;
2. Their duration and
3. Volume of business transacted per such session since April 1992.
In case, the exchange has not provided such facilities so far, you are requested to provide them to the investors and member brokers to deal in odd lot shares and debentures at the Exchange. The availability/introduction of such facilities at the Stock exchange may please be given wider publicity through the notice boards at the Exchange as well as the press to inform the investors regarding availability of such facilities.
Please keep us advised of the action taken in this regard.
Meanwhile, please acknowledge the receipt of this letter.
U. C. DIKSHIT