Formulation of price bands for the first day of trading pursuant to Initial Public Offering (IPO), re-listing etc. in normal trading session

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..... ng pursuant to Initial Public Offering (IPO), re-listing etc. in normal trading session 1. SEBI vide circular no. CIR/MRD/DP/02/2012 dated January 20, 2012 prescribed parameters regarding price discovery through Call Auction and applicable price band for the first day of trading pursuant to IPO or recommencement of trading for re-listed scrips in normal trading session. 2. As aforesaid Ca .....

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..... y respective exchanges after computation of equilibrium price. b. If difference in the equilibrium price between exchanges in percentage terms (i.e. absolute difference/minimum of equilibrium prices, expressed as %) is more than the applicable price band for the scrip, a Common Equilibrium Price (CEP) would be computed by exchanges. The CEP shall be volume weighted average of equilibrium prices .....

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..... Price Qty Lowest bid/ask price Highest bid/ask price 120 300 100 140 100 500 80 130 As percentage difference in the two equilibrium prices (i.e. 100 and 120) is more than the applica .....

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..... municate to SEBI, the status of implementation of the provisions of this circular in the Monthly Development Report 7. This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. 8. Thi .....

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