The National Stock Exchange (NSE) on June 02, 2023, issued a circular regarding the Special Pre-open session for first-day trading of IPO and Re-listed securities with reference to SEBI Circular Ref. No: SEBI/HO/MRD-TPD1/CIR/P/2023/55 dated April 11, 2023.
The following will be applicable to trade on the first day of IPO or re-listing:
• Call Auction sessions would continue to be conducted separately on individual exchanges and orders would be matched by respective exchanges after the computation of the equilibrium price.
• If there is a 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 the volume-weighted average of equilibrium prices on individual exchanges as determined by the Call Auction.
• The Exchanges shall set the aforesaid CEP in their trading systems and apply uniform price bands based on the CEP.
• Only unexecuted pending orders from the Call Auction session within the aforesaid price band shall be carried forward to the normal market segment.
The above mechanism shall be effective from the trade date of June 12, 2023.
[Circular Ref. No: 67/2023]
