SEBI Mulls First Day Pricing Cap For New Listings
Market regulator SEBI (Securities and Exchange Board of India) is considering a first day price band for new scrips.
The objective is to prevent manipulation of new scrips to unreasonable price levels. Currently there is only a dummy filter, which just informs the exchanges when a new listing’s price goes up by 100% or more.
Recently many new listings have seen exorbitant first day prices.
For example, Nissan copper whose issue price was Rs 39, touched a high of 136 on listing. SEBI is currently investigating trading details of all such stocks.