Outsized gains on the day a stock is listed could soon become a thing of the past. Stock market watchdog Sebi will consider imposing a circuit limit on share price movements on the first couple of days of listing to curb manipulation in initial public offers (IPOs). The primary market advisory committee of Sebi, or PMAC, as it is called, will take up the proposal on Thursday. The PMAC will go through the entire IPO process - from filing of application till allotment - to make it more efficient and transparent, a Sebi official told ET. One of the key proposals is introducing a 10% circuit filter on the first two days of trading, said another official privy to the matter. The move has been prompted after the market regulator Sebi found evidence of manipulation in some the recent public offers on listing.
Source : ET
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