New IPO Rules Imposed by SEBI to Stop Manipulation & Speculation through Call Auction or Price Discovery Mechanism

Edit this post
SEBI as a watch dog has finally woken and has imposed certain restriction on price of IPO on listing day and this is good as it will keep speculators and promoters at bay with their dubious deals. Price discovery mechanism or call auction is the new mantra on listing day.

IPOs Upto 250 Crores
IPOs upto 250 Crore will have one hour call auction between 9 AM to 10 Am and thereafter a 5% price band from the equilibrium price will be applicable. Additionally stock will remain in Trade for Trade segment for 10 days meaning compulsory delivery.

IPOs Above 250 Crores
All remaining same as above except a price band of 20% will be applied.

Relistings
Relisted shares will also undergo compulsory 1 hour call auction and price band of 5% will be applicable to them and will remain in Trade to Trade segment for 10 days. Unless price is discovered through call auction, stock will remain in call auction sessions.

Timings for call auction

9 AM- 9:45 AM – Order entry and cancellation process
9:45 AM – 9:55 AM – Order matching
9:55 AM – 10:00 AM – Buffer Period

What happens if No price discovered in call auction for an IPO?

If IPO is not able to establish price through call auction, than issue price will be used to discover the price band.
Bookmark us for Indian IPO updates well in time to make money.

call auction mcx, call auction mechanism,  call auction method,  call auction market definition

Related Posts

Nifty / Bank Nifty Option Tip

Looking to trade intraday Nifty or Bank Nifty options? Our Nifty / Bank Nifty Option Tip shares trading calls with a defined entry, target and stop loss, so you know your risk before you trade. It suits traders who follow the market on a trading screen as well as those who place orders through their broker or by phone. Click on Image or Post Title to Read More.

Latest Video Reviews by Clients

Watch video reviews recorded by our clients about their experience with Indian-Share-Tips.com services, including the Nifty / Bank Nifty Option Tip and Delivery Tip. Click on Image or Post Title to Read More.

Awards and Recognition

See the awards and recognition Indian-Share-Tips.com has received over the years for its work in stock market research and investor education. Click on Image or Post Title to Read More.