Skip to main content

MCX Listing and Pre-open session for IPOs

mcxlistingdate
We have already seen how the pre-open session or call auction trading session for existing securities works. And similarly for the new listings of the IPOs during listing day, the exchanges have introduced a Special Pre-Open Session (SPOS) for IPOs and re-listed scrips.

Salient Features of Special Pre-open Session :

1. This session shall be conducted for IPO scrips only on the first day of trading, i.e. day of listing of the scrip on the Exchange and for Re-listed scrips only on the day of re-commencement of trading of that scrip on the Exchange.
2. SPOS shall be for duration of 60 minutes from 9:00am – 10:00am for scrips participating in that session and shall be followed by continuous trading session.
3. From the next trading day onwards, trading would be normal.
4. Only limit orders will be permitted during the special pre-open session and Market orders will not be accepted.
5. For IPOs of Issue size greater than Rs.250 cr - during pre-open session, there would no Price Bands. But, during the normal trading session it would be 20% of Equilibrium Price (Listing price).
For smaller issues, with size of less than Rs.250 cr., the price bands are 5%.

The above point is interesting, since there wouldn't be no 50/100 % moves after the listing price, which is intended to curtail huge swings in stock prices post-listing.For e.g., if the MCX issue price is fixed at Rs.1000 and during the pre-open session, the price discovered is at 1200, then the price band is fixed at 20% of the listing price, on either side. And because of this new method the volatility on the listing is expected to be substantially reduced.

MCX listing date is to going to be an interesting session, since this is the first time an IPO is being listed using the above methodology. Let us wait and watch, how the new method is being implemented.

Comments

  1. Thanks for the excellent information. The new listing session should be an exciting one.

    ReplyDelete
  2. Yes. The expected listing price could be issue price + 300-350 rs

    ReplyDelete
  3. The allotment may be done 5th or 6th march and listing 9th or 12th march.

    ReplyDelete
  4. As expected the stock listed about + 350 (Rs.1387). No big follow-up buying.

    ReplyDelete

Post a Comment

Popular Posts

Your Bill Amounts Are Going To Increase From June 1, 2016

Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. It is categorized under Indirect Tax and came into existence under the Finance Act, 1994. Union Finance Minister, Arun Jaitley, in his budget announcements proposed to impose a cess, called the Krishi Kalyan Cess, @ 0.5% on all taxable services. The present rate of service tax will be hiked to 15 per cent from June 1, 2016, from 14.5 per cent. Take a look at what gets expensive:



Phone Bills: Your phone bills are going to go up. So, pay a good 15 per cent now on service tax on phone bills.

Restaurant Bills :If you are dining in a restaurant that already has service tax applicable, you are going to pay more on your eating out. Though 0.5 per cent on a single bill may not mean much, frequent diners may end-up paying a lot during the year.

Travelling: You will have to pay more for air travel, as there is a service tax on tour operators and travel agents.

Moneycontrol Terminal - Streaming Live Quotes

Moneycontrol has introduced a new feature Moneycontrol Terminal - an enhanced version of real time price updates. Though there were live quotes provided by the website previously, the present form  gives a better update of live quotes of indices and stocks.

This terminal provides live streaming quotes for both NSE and BSE free. It also provides quotes for most of the indices and also the constituents/stocks of the indices in BSE and NSE.  The terminal also provides live news and other market news, which might be useful for traders. The hardware recommended is minimum of 1 GB RAM.

It would be better if stock of any choice could be added ( market watch of a set of stocks ), which would be easier to track one's trading positions. Anyway, this is a better alternative for people who don't have access to any trading software, to view live action of the markets.




You could just try the same here at Moneycontrol Terminal


NSE Level 3 Data

Before we get into details of NSE Level 3 Data, it is important to first understand the basic operations of the stock market.  All publicly traded equities have a bid price and an ask price when they are bought and sold. The bid is the highest price a trader( or an investor) is willing to purchase a stock. The ask is the lowest price in which he is willing to sell a stock.


Depth of the Market(DOM):Looking at a Level 1, Level 2 or Level 3 quotes can give a trader, a basic idea of how a stock is performing at any given time.

Level 1 Market Data provides the basic market data which includes Bid price, Bid size, Ask price and Ask size.

Level 2 Market Data provides more information than Level I data. Mainly, it doesn't just show the highest bid and offer, but also shows bids and offers at other prices. Now level 2 provides market depth data upto 5 best bid and ask prices.

Level 3 Market Data provides market depth data upto 20 best bid and ask prices .  This primarily used by brokers and ma…