BSE holds talks to boost participation in Closing Auction System: Report 

India's oldest bourse BSE Ltd is in discussions with high-frequency trading (HFT) firms and other market participants to encourage greater participation in the newly introduced closing auction system (CAS), according to the stock exchange's Chief Executive Officer (CEO).

CEO Sundararaman Ramamurthy said on Wednesday that liquidity remains critical to the success of the closing auction mechanism. He noted that participation from retail investors and HFT firms has so far been limited, restricting liquidity in the system, a Bloomberg report said.

Ramamurthy said a common order book across BSE and NSE could help increase participation and liquidity in the closing auction, while also improving price discovery, the global news agency cited Ramamurthy's interview to television channel Zee Business.

The BSE chief also discussed the possibility of exchanges being allowed to list their own shares on their respective platforms under the 'permitted to trade' framework. He said discussions are underway with regulators on whether such an arrangement could be permitted.

BSE, which is currently listed on its larger rival NSE, had earlier sought regulatory approval to make its shares available for trading on its own platform through the permitted-to-trade route. However, the exchange’s request was not approved, Ramamurthy said.

Meanwhile, BSE shares fell as much as 3.4% on Wednesday, putting the stock on track for its lowest closing level since April 7. The shares have declined around 14% over the past month, amid pressure on the stock.