Archive · 13 Jan 2026
SEBI Considers Reforms to Pre-Open Session
The Securities and Exchange Board of India (SEBI) is thinking about making some changes to how prices are set for new and relisted stocks before the market opens.
Right now, there are some rules that might be causing prices to be set too low, which isn't fair to investors.
SEBI wants to make these rules better so that prices reflect the true value of the stocks.
They are considering using more realistic price ranges and making sure that the prices are set based on more trades.
This way, the prices will be fairer and more accurate.
SEBI is reviewing the Special Pre-Open Session (SPOS) mechanism for IPOs and relisted scrips.
Current dummy price bands range from -85% to 50% of the base price to prevent errors.
SEBI plans to make dummy price bands more consistent and less restrictive for better participation.
Proposed changes include uniform flexing of price bands and a more realistic base price methodology.
SPOS will be considered successful only if the discovered price is based on orders from at least five unique buyers and sellers.
- Who
- Securities and Exchange Board of India (SEBI)
- What
- Considering changes to the Special Pre-Open Session (SPOS) mechanism for IPOs and relisted scrips
- When
- Proposals under consideration, no specific timeline mentioned
- Where
- India
- Why
- To improve price discovery and prevent distorted pricing
- Organization
- Securities and Exchange Board of India (SEBI)
- Session
- Special Pre-Open Session (SPOS)
- Current Price Bands
- -85% to 50% of base price
- Proposed Changes
- Uniform dummy price bands, dynamic flexing, base price methodology
- Success Criteria
- At least five unique buyers and sellers
- Current Base Price
- Lower of face value or book value
- Proposed Base Price
- More realistic, reflecting present value