SEBI proposes uniform price band mechanism for stocks listed on multiple exchanges

The Securities and Exchange Board of India (SEBI) has proposed a mechanism to harmonize price bands and pre-open auction base prices for stocks listed on multiple exchanges.

The proposal seeks to address situations where a stock trades on one exchange but records no trades on another. In such cases, differences in closing prices can lead to varying price bands for the same stock across exchanges.

Under the proposed framework, exchanges will continue to use their respective closing prices when a stock trades on all exchanges or does not trade on any exchange.

If a stock trades on only one exchange, other exchanges where no trading occurred will use the closing price of the exchange where the stock was traded to determine the next day's price band and pre-open auction base price.

In cases where a stock trades on two or more exchanges but remains inactive on one or more exchanges, the non-trading exchanges will use the closing price from the exchange that recorded the highest trading volume in that stock.

SEBI said the proposal aims to ensure greater consistency in price bands and improve price discovery across exchanges.

To facilitate implementation, stock exchanges will be required to establish arrangements for sharing closing price data with one another.

The market regulator has invited public comments on the proposal until 2 July 2026.