Mumbai, May 22 -- Securities and Exchange Board of India (SEBI) has proposed changes to the price discovery mechanism for IPOs and re-listed shares through the pre-open call auction session. The move aims to improve price discovery and address cases of artificially suppressed listing prices.

In a consultation paper issued on 21 May 2026, SEBI said the existing dummy price band and base price framework for re-listed shares had led to distorted price discovery in certain cases. The regulator noted that some stocks later witnessed repeated upper circuits and surveillance actions due to persistent buying pressure.

SEBI said the review was prompted by representations highlighting that the current dummy price band and base price mechanisms we...