Merchant bankers ensure market making through brokers of SME segment for a minimum period of 3 years from the date of listing of security issued.
Market making is carried out only by eligible trading members (brokers) registered as market makers with the exchange where security is listed.
There shall be a minimum of one and maximum of five designated Market Makers for every security traded on the SME segment.
Benefits of Market Making with Evermore
1. Market Makers improve the liquidity for the company stocks. This results in better pricing of shares.2. Better liquidity in the stock help investors in to selling their holding easily at any point in time.
3. Market making encourages new investors to buy the stocks as Market Maker offering assured liquidity.
4. Market makers compete among themselves which results in better pricing for investors.
5. Market makers also collect and analyze the data about the given stock which helps both investors as well as the company. 6. Promoters’ holding is not eligible to be offered to the market makers.
