NSE imposes 90% price control cap on opening price of SME IPOs

2 days ago 2

The National Stock Exchange (NSE) connected Thursday announced that it volition enforce a terms power headdress of 90% connected the contented terms of SME IPOs during the pre-opening session.

“To standardize the opening terms discovery/ equilibrium terms crossed exchanges during peculiar pre-open league for archetypal nationalist connection (IPO) for the SME platform, it has been decided to enactment an wide capping up to 90% implicit the Issue terms for SME IPOs,” NSE said successful a circular.

The circular volition travel successful unit with contiguous effect i.e. July 4, 2024.

The terms power headdress of 90% shall beryllium applicable lone to the SME conception and not for Mainboard IPOs, Relisted Securities oregon Public Debt, it added.

For instance, Shivalic Power Control got listed astatine a 211% premium connected the NSE SME connected July 1. Many different caller SME IPO listings saw exorbitant gains connected the archetypal time of trading.

The concerns successful the SME conception were besides raised by SEBI chairperson Madhabi Puri Buch earlier this twelvemonth arsenic she noticed “signs of manipulation successful the SME segment”.

(To beryllium updated)

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