We are only conducting Seminars to make Professional Traders. The material published on the blog is of general and educational information only and is not suitable for trading purpose. We do not provide Stock Tips. Please do not make any payment on website. All Material is available Free on the site.

MCX IPO – Price Discovery Mechanism being Applied for First Time

MCX IPO Listing Date

MCX IPO which is being listed on 09 Mar 2012 will become first IPO to list with listing price discovery regulation. This means that for first hour of the day, price will be discovered by using call auction in the first hour of the day between 9AM to 10 AM.

Price Discovery Mechanism

Now what does Price Discovery Mechanism or call auction means that if the price of MCX has got a base price of Rs ‘X’, than the circuit which will be applied on higher side will be X+(20%of X) and X-(20%of X) for the rest of the day.

Thus due to price discovery mechanism we do not foresee high listing gains which could have had been seen without this mechanism being in place.


This is good for the IPOs as promoters or unscrupulous elements can not jack up the prices arbitrarily. This is a good initiative by SEBI to impose call auction in first hour of the listing.

MCX IPO allotment status, MCX IPO news, price discovery method, price discovery in commodity markets,price discovery report

Bookmark us for Indian IPO updates and analysis for you to arrive at correct investment advice for your hard earned money.

Most Visited Stocks - Click to Visit Link

We Teach and Train our Readers as we want to make sure that Readers become thorough professionals. We do not provide any stock tips. Please do not make any payments. Your joining or reading content is subject to acceptance of our terms and Disclaimer for which link is given on the site at bottom right hand corner. Wherever the word tip is written; it implies an idea which is of informational value and is not suitable for trading. Trade ideas if any are for educational purpose only. We are conducting Seminars to make Professional Traders. Join Now for Bangalore, Chennai and Hyderabad. Leave query through contact form.
Chart> Nifty A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 0-9