Dear Sir \ Madam
The Securities and Exchange Board of India (SEBI) has issued circular No. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/86 dated June 20, 2024, regarding introduction of a special call auction mechanism for price discovery of scrips of listed Investment Companies (ICs) and listed Investment Holding Companies (IHCs)
It is observed that scrips of a few listed ICs and IHCs are being traded infrequently and at a price which is significantly lower than the book value disclosed by these companies in their latest audited financial statements. Moreover, these companies generally have no day-to-day operations and hold investments in different asset classes including in scrips of other listed companies.
Based on the deliberations with various stakeholders, it has been decided to put in place a framework for “special call auction with no price bands” for effective price discovery of scrips of such ICs and IHCs.
The first such special call auction shall be conducted in the month of October 2024 based on the latest available audited financial statements of such companies.
The aforesaid circular is attached for reference.
All Listed companies are requested to take note and comply accordingly.
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Sameer Vaze
DGM-Trading Operations
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Shyam Bhagirath
Manager-Listing Compliance
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