9911796707
TMI BlogIntroduction of a special call auction mechanism for price discovery of scrips of listed Investment Companies (ICs) and listed Investment Holding Companies (IHCs)X X X X Extracts X X X X X X X X Extracts X X X X ..... or call auction is applicable for pre-open sessions; pre-open sessions for Initial Public Offer (IPO) relisted scrips; and illiquid Scrips. 2. It is observed that scrips of a few listed ICs and IHCs are being traded infrequently and at a price which is significantly lower than the book value disclosed by these companies in their latest audited financial statements. Moreover, these companies generally have no day-to-day operations and hold investments in different asset classes including in scrips of other listed companies. 3. The variance in the market price and book value of such ICs and IHCs is adversely affecting liquidity, fair price discovery and the overall interest of investors in scrips of such companies. 4. In order to address the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s INR 3, which is less than 50% of the per share book value based on the value of its investments in listed companies. Thus, the company would meet this eligibility criterion for special call auction. v. In case, any of the eligibility criteria is not fulfilled by the company at one of the stock exchange, the scrip would not be eligible for special call auction at any of the stock exchanges. 5.2. Procedure for Special Call Auction Mechanism: i. Stock exchanges shall initiate the process for special call-auction with no price bands for eligible ICs or IHCs with a 14 days advance notice to the market. In case the company is listed on multiple stock exchanges, stock exchanges shall co-ordinate amongst themselves and the date of special call au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earing Corporations and modifications therein. 5.4. In order to avoid order spoofing and manipulative activities in the special auction session, stock exchanges shall have adequate risk management and surveillance mechanism in place before conducting such session. 6. Applicability: 6.1. To start with, first such special call auction shall be conducted in the month of October 2024 by stock exchanges based on the latest available audited financial statements of such companies. 6.2. The subsequent special call auctions shall be done as and when the annual audited financial statements are published by the companies. 7. Stock Exchanges are advised to: 7.1. take necessary steps and put in place necessary systems for implementation of the above. 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
