POLICY FOR COMMENCEMENT/RECOMMENCEMENT OF TRADING OF SECURITIES
Summary
SEBI issues a policy directive to stock exchanges regarding the imposition of price bands on the first day of trading. The circular exempts specific corporate restructuring events from mandatory price band requirements to facilitate price discovery. Stock exchanges are directed to implement this policy immediately and report its status in their next Monthly Development Report.
Text
In cases of merger, de-merger, amalgamation, capital reduction, scheme of arrangement... rehabilitation packages approved by the Board of Industrial and Financial Reconstruction... and Corporate Debt Restructuring (CDR) packages... there is no need to have a price band on the first day of commencement/recommencement of trading.
The price band may be retained in all other cases on the first day.
The above policy may come into force with immediate effect.
Stock Exchanges are advised to give effect to the abovementioned policy and communicate to SEBI, the status of implementation of the requirements of this circular in the next Monthly Development Report.
This circular is issued in exercise of powers conferred by sub-section (1) of Section 11, read with sub-section (2) of Section 11A, of the Securities and Exchange Board of India Act, 1992...
Source: SecMarx — POLICY FOR COMMENCEMENT/RECOMMENCEMENT OF TRADING OF SECURITIES. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.