SEBI proposes new rules to enhance IPO price discovery
SEBI has proposed new rules to improve price discovery in IPOs and re-listed companies, addressing concerns over artificially suppressed prices. The initiative aims to prevent persistent buying pressure that leads to upper circuit hits and surveillance measures.
pre-market1 source ↓written by the desknot a recommendation
The Securities and Exchange Board of India (SEBI) has released a consultation paper aimed at improving the price discovery mechanism for Initial Public Offerings (IPOs) and re-listed companies. The proposal addresses concerns over artificially suppressed price discovery caused by dummy price bands and base price setups. This distortion has led to persistent buying pressure, resulting in shares hitting upper circuits and facing surveillance measures. 📈
Not investment advice. For informational purposes only.