India, May 24 -- Aiming to overhaul the price discovery mechanism for Initial Public Offerings (IPOs) and re-listed companies during their Pre-open Call Auction Sessions, the Securities and Exchange Board of India (SEBI) has released a consultation paper.

The market regulator's proposal addresses growing concerns that current trading frameworks-specifically dummy price bands and base price setups-are distorting initial trading values.

SEBI said in its consultation paper that "representations have been received by SEBI stating that the dummy price band and the mechanism for base price in case of re-listed scrips are leading to situations of artificially suppressed price discovery".

This suppression has historically triggered immediate, ...