New Delhi, June 12 -- Market regulator Securities and Exchange Board of India (SEBI) has proposed a harmonised framework for determining the base price for pre-open call auctions and the price band mechanism for securities listed on multiple stock exchanges, seeking to address price disparities in illiquid stocks and improve market efficiency.

In a consultation paper issued on Thursday, SEBI said the proposal aims to bring consistency in the treatment of securities traded across exchanges, particularly in situations where trading activity is absent on one or more exchanges.

Stock exchanges currently apply scrip-wise price bands independently using their respective previous-day closing prices. While the price bands are coordinated across...