By Sam Nagarajan
Mumbai: The Securities and Exchange Board of India (SEBI), the market regulator, plans to introduce an upper limit of 20% for shares that resume trading after mergers and separations, according to the regulator’s Web site.
The limit wouldn’t apply to those securities that already have a ceiling of 5%, the regulator said. The Securities & Exchange Board wants to check “spikes” on the first day of re-listing of shares, and sought suggestions from investors.
Shares that start trading after an initial public offer don’t have such limits now, the regulator said.