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

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he first day of trading 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. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rders would be matched by 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....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rice 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 applicable price band (i.e. 20% against 5%), CEP would be calculated viz. (120*300+100*500)/800 = 107.50. Further, the lower and upper price band on both exchanges would be 5% around the aforesaid price of 107.50 and the unexecuted pending ord....