The Bombay Stock Exchange (BSE) plans to introduce pre-opening trade in IPO stocks on the day of listing, a practice that is currently only permitted for Sensex stocks and 20 other large cap counters.
“We are keen on allowing the IPO stocks to have a pre-open session on their debut day. We are talking to the market watchdog Sebi on this,” BSE Deputy Chief Executive Ashishkumar Chauhan told PTI.
As to how this would assist the debutante company, Chauhan said it will help avoid wild price fluctuations on the listing day, as it does with other stocks.
Explaining the mechanism, he said, “Instead of the 50 stocks that are allowed to have pre-open now, when there is a listing, the debutante scrip will also be part of the pre-open trade on that day.
More Under SEBI