Is there any circuits at the time of IPO listing?

SEBI has introduced some major changes for trading on debut day of stocks post the completion of the initial public offering (IPO) process. Under the changed rules, which will be effective once stock exchanges modify their trading systems to suit them, there would be a 45-minute special session on the day stocks are listed, after which it will trade in the regular session.

The closing price in this special session will be the reference point for the stock when it enters the regular session in which there would be a circuit filter of 5% for stocks whose IPO size is Rs 250 crore or less. This circuit filter limit will be raised to 20% if the IPO size is over Rs 250 crore, a SEBI circular noted.

In case of issues of Rs 250 crore or less, all the trades will be on a trade-for-trade basis for the first 10 days since listing. This means there would be no scope for day trading in the stocks of smaller companies during this period. This rule will not apply to issues of over Rs 250 crore.