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Thursday, March 15, 2007

SEBI to announce guidelines on share listing price

Securities and Exchange Board of India's guidelines on ceiling of listing prices for debutante shares will be announced "very soon", said M Damodaran, chairman, SEBI.

The move is aimed at preventing prices of debutante stock from rising beyond a certain limit on the listing day when circuit filters are not operational.

Currently, circuit filters on share prices are imposed after the listing day, as it allows price discovery, which sets a reference price for circuit filters.

Although some recent listings have taken place at discount to the issue price, earlier some listings were around 100-150% premium to the issue price, as per NW18.


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