Mumbai: Companies floating IPOs in future may have limited movement on day one as SEBI has sought to restrict sharp ups and downs in re-listing of scrips on day one on the exchanges.

The market regulator has invited comments and suggestions on a proposed 20 per cent circuit filter for scrips where trading restarts after de-merger, amalgamation, revocation of suspension among others.

Currently, stock exchanges do not apply price bands or circuit filters on the day of IPO listing, re-commencement of trading in cases of demergers, amalgamations, capital reduction, schemes of arrangement, restructuring as well as for scrips already listed on other stock exchange.

However, after the significant price rise on the first day of trading of scrip Ahluwalia Contracts, where recommencement in trading saw the scrip rise to Rs611.90 compared with a listing price of Rs101.50 to a closing on debut day at Rs577.80 alarm bells began ringing within SEBI.

SEBI deliberated on the matter in the weekly surveillance meetings with stock exchanges and had proposed a price band of 20 per cent to be applied by exchanges for all cases of re-starting of trading other than IPOs.