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.
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.
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.
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.
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.