Summary of new SEBI Rules for IPO Listing - Indian IPO Blog

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Friday, March 9, 2012

Summary of new SEBI Rules for IPO Listing

In order to curb market manipulation and speculation, SEBI has changed rules for newly-listed and re-listed stocks.

For IPOs up to Rs 250 crore in size:
- There will be a 1 hour call auction (9 AM to 10 AM).
- A price band of 5% will be applicable (5% from the equilibrium price).
- The stocks will trade in "Trade for Trade" segment for 10 days.

If no equilibrium price is discovered, the issue price will be used to calculate the price bands.

For IPOs greater than Rs 250 crore in size:
- There will be a 1 hour call auction (9 AM to 10 AM).
- A price band of 20% will be applicable (20% from the equilibrium price).

If no equilibrium price is discovered, the issue price will be used to calculate the price bands.

For re-listings:
- There will be a 1 hour call auction (9 AM to 10 AM).
- A price band of 5% will be applicable (5% from the equilibrium price).
- The stocks will trade in "Trade for Trade" segment for 10 days.

If no equilibrium price is discovered, normal trading will not commence and the stock will continue to trade in call auction sessions.


Call auction timings and details:
9:00 AM to 9:45 AM - Order entry and cancellation.
9:45 AM to 9:55 AM - Order matching.
9:55 AM to 10:00 AM - Buffer period.

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