Sebi asks exchanges to set 'common equilibrium price' for listing day post IPOs

The Securities and Exchange Board of India (SEBI) on Tuesday asked stock exchanges to set a “common equilibrium price” for stocks on the first day of the listing post the IPO in order to remove any ambiguity over price discovery.

Currently, the price discovery for shares happens through a call auction process.

"Call auction session would continue to be conducted separately on individual exchanges and orders would be matched by respective exchanges after computation of equilibrium price," said Sebi in a statement.

The common equilibrium price shall be volume weighted average of equilibrium prices on individual exchanges as determined by the call auction.