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Informist, Thursday, Jun. 11, 2026

 

--SEBI proposes to harmonise base price for call auction in pre-open session 

--SEBI proposes to review price band for scrips listed on multiple bourses 

 

MUMBAI – The Securities and Exchange Board of India Thursday proposed, through a consultation paper, harmonisation of the base price for price bands in call auctions in the pre-open session and regular market trading for stocks traded on more than one exchange. If a stock is not traded on one exchange but is traded on another, the inactive exchange should use the other exchange's closing price as the base price to determine the price band the next day for its pre-open call auction and normal trading, SEBI proposed.

 

Currently, exchanges independently calculate price bands using their own previous closing prices. However, when a stock sees low or zero trading volume on one exchange, this can interfere with efficient price discovery in the stock. For a zero-volume stock on one exchange, the price band gets fixed at older base prices, though the stock may have moved up or down on another exchange. This divergence can create two different price sets for the same stock, SEBI said in the consultation paper. "There is no mechanism to adjust the price bands on the stock exchange(s) where there is no trading on the previous day, which may lead to progressive divergence," the markets regulator said.

 

SEBI said its proposal is to ensure uniform price bands for stocks listed on multiple exchanges. It has proposed that when a stock is traded on more than two exchanges but remains inactive on one, the inactive exchange should use the closing price of the exchange with the highest trading volume. Exchanges may execute agreements and memoranda of understanding to share closing prices to implement the mechanism, SEBI said.

 

SEBI has invited public comments on its consultation paper by Jul. 2.  End

 

Reported by Eshitva Prakash

Edited by Rajeev Pai

 

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