Introduction of a special call auction mechanism for price discovery of scrips of listed Investment Companies (ICs) and listed Investment Holding Companies (IHCs)

SEBI's Master Circular No. SEBI/HO/MRD2/POD-2/CIR/P/2023/171, dated October 16, 2023, introduces a special call auction mechanism for price discovery of scrips of listed Investment Companies (ICs) and Investment Holding Companies (IHCs). \r

These companies, trading infrequently at prices significantly below their book values, hold diverse investments but lack regular operations. To enhance liquidity and fair price discovery, SEBI has decided, after stakeholder consultations and recommendations, to implement a special call auction without price bands. \r

Eligibility criteria are set based on industry classifications and trading history, with stringent operational guidelines ensuring transparency and market integrity. The mechanism, conducted annually initially, aims to optimize investor confidence and market efficiency in dealing with such securities.