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Finshots Daily

SEBI's new move cheers up holding company stock prices

Jul 2, 2024
06:06
Snipd AI
SEBI's proposed solution for undervalued holding company stocks involves special call auctions to boost liquidity and investor confidence, potentially leading to a positive impact on stock prices.
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Podcast summary created with Snipd AI

Quick takeaways

  • SEBI's scheme aims to address undervaluation of holding companies by proposing special call auctions for better price discovery and liquidity.
  • Holding companies like Bajaj Holdings remain undervalued due to reliance on subsidiary dividends, SEBI's call auction proposal may correct this and improve trading environment for investors.

Deep dives

SEBI's Scheme to Boost Holding Companies' Stock Prices

SEBI introduced a new scheme aimed at benefiting holding companies' stock prices. Holding companies, which primarily manage investments in other companies, have historically been undervalued in the market. By proposing special call actions for these stocks, SEBI aims to address the liquidity issues and undervaluation problem. The call auction system will provide a structured trading environment to help investors discover new prices for these stocks, potentially increasing investor confidence and improving liquidity.

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