On the listing day of stock, trading hours are typically structured differently due to the Call Auction mechanism implemented by exchanges. Here's a breakdown of the trading hours for a stock on its listing day following the SEBI circular:
Call Auction Mechanism:
· The Call Auction mechanism is extended to IPOs (New and Relisted Scrips) on the first day of trading/re-commencement.
· It determines the Opening Price based on aggregate supply and demand for the underlying listing day.
· The session lasts for 60 minutes, from 09:00 AM to 10:00 AM.
Pre-Open Session:
· Order placement in the Pre-Open session is allowed for the first 45 minutes, from 09:00 AM to 09:45 AM.
· During this time, investors can place orders to determine the stock's opening price.
Exchange-Related Functions:
· The remaining 15 minutes, from 09:45 AM to 10:00 AM, are utilised for exchange-related functions.
· This includes any necessary administrative tasks or preparations before the stock begins trading regularly.
· This structure ensures a fair and orderly process for determining the opening price of newly listed stocks and allows for a smooth transition into regular trading hours.