It is estimated that there are more than 4000 illiquid stocks out of the total 7000 stocks listed in the Indian markets. The holders (investors) of these securities thus are deprived of an exit route, i.e sell these securities at a fair value. The state of illiquidity of the stocks acts as a damper for the issuer companies to tap further resources from the capital markets for their expansion /diversification programmes. Over all the security market/stock exchange professing to render liquidity to these stocks, to benefit the investors to make short term investments, while simultaneously providing long term funds to business & industry that issue these securities, is unable to achieve its professed objective

The problem has come to the attention of SEBI and the Federation of Indian Stock Exchanges and the twin questions that have come to the fore are:

• Why & How stocks become Illiquid?

• How illiquid stocks can be brought back to life?

The different dimensions of the problem are analysed and discussed in the ensuing articles titled as under

1. Definition of Illiquid Stocks and the Negative Attributes They Represent

2. SEBI Proposal to Introduce Call Auction Market as a Trading Platform to Deal with Illiquid Stocks

3. The Reasons Behind the Rise in Number of Illiquid Stocks Over the Past Years

4. Major Factors Needed to be considered while Framing the System to Bring Illiquid Stocks Back to Life through Call Auction Market

5. CAM Process - Effect on Secondary Markets & Benefits to Investors

6. The Scheme of Call Auction Market for Illiquid Stocks - An Assessment

7. BSE-IndoNext - Proposal by BSE to deal with Illiquid Stocks