SEBI has issued strict guidelines on last Friday to check the price rigging in the secondary market immediately after it is listed. SEBI has prescribed call auction mechanism to discover the best price of the share. This will be done on the first day of the listing of the share during 9:00 AM to 10:00 AM.. It has also prescribed price band for the share. Normal trading of such share will start after the one hour call auction mechanism during the call auction, which would take place from 9 am to 10 am, the first 45 minutes shall be allowed for order entry, order modification and order cancellation. Subsequent 10 minutes would be for order matching and trade confirmation and the remaining five minutes shall be the buffer period. The regulator has also put in place a price band of 5% (of equilibrium ‘discovered’ price or issue price if price discovery has not happened) for all scrips where issue size is less than `250 crore and those which have got relisted. Additionally, these scrips would be placed in the trade for trade (TFT) segment, where one must pay immediately to take delivery, for the first 10 days.For new listings with an issue size of more than `250 crore, the price band applicable would be 20%.
No comments:
Post a Comment