SME IPO Circuit Limit Rules
SME IPO Circuit Limit Rules
In India, the circuit limit rules for SME IPOs (Small and Medium Enterprises Initial Public Offerings) are set by the Securities and Exchange Board of India (SEBI). The circuit limit is a price band set by the exchange within which a stock can move on a given trading day.
Sme ipo requirements are SEBI mandates that an SME IPO issuer must have a post-issue paid-up capital of up to ₹25 crores and a net worth of up to ₹100 crores, along with a minimum issue size of ₹10 crore and a maximum subscription limit of ₹2 crores per investor. sme ipo circuit limit for SME IPOs is set at 20% for the first day of trading, which is reduced to 5% for the next 10 trading days.
The circuit limit for SME IPOs is fixed at 00320% for the first day of trading, after which it is reduced to 5% for the remaining trading days for a period of 10 trading days. This means that on the first day of trading, the stock price of an SME IPO Limit can move up or down by a maximum of 20% from its issue price. SME IPO rules and sme ipo requirements in India are SEBI mandates that SME IPOs must have a minimum issue size of ₹10 crore and a maximum subscription limit of ₹2 crore per investor, with the issuer having a post-issue paid-up capital of up to ₹25 crore and a net worth of up to ₹100 crore.
For example, if the issue price of an SME IPO is Rs. 100, then on the first day of trading, the price can go up to Rs. 120 or down to Rs. 80. After the first day, the circuit limit will be reduced to 5%, which means the stock price can move up or down by a maximum of 5% per day for the next 10 trading days.
The circuit limit for SME IPOs is designed to prevent excessive volatility in the price of newly listed SME stocks and to protect retail investors from sudden and sharp price movements. It also provides an opportunity for market participants to adjust their positions based on the new information that becomes available after the IPO.
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