The National Stock Exchange (NSE) on July 30, 2024, issued an advisory on Inventory Management for Market Makers on the SME Platform.
The following has been stated namely: -
• It states that if a Market Maker exhausts their inventory, they shall notify the Exchange in the prescribed format given in Annexure 1 (attached below) with a certified demat statement and continue providing one-way 'Buy' quotes for at least 75% of the day until new inventory is acquired.
• It states that after acquiring new inventory, the Market Maker shall provide two-way quotes for at least 75% of the day, adhering to permissible bid-ask spread limits outlined in SEBI Circular nos. CIR/MRD/DP/14/2010 dated April 26, 2010.
Kindly refer to the attached document for detailed notification.
[Circular no. - NSE/SURV/63146]
