The Securities and Exchange Board of India (Sebi), the capital markets regulator, has introduced modifications to the norms governing call auction sessions for IPO listings and the relisting of scrips. These changes aim to ensure better price discovery and reduce manipulation during the listing and relisting processes.
Sebi’s new measures focus on enhancing the transparency and accuracy of the price-setting mechanism on the day a stock begins trading following an initial public offering (IPO). The regulator has imposed additional measures and surveillance to curb potential manipulation in the opening price computation, thereby promoting a fairer market environment.
The enhanced regulatory framework underscores Sebi’s commitment to maintaining integrity in the capital markets and ensuring that investors can rely on fair and transparent price discovery mechanisms during IPO listings and relistings.
