The Securities and Exchange Board of India (SEBI) has released a consultation paper aimed at revamping the price discovery mechanism for Initial Public Offerings (IPOs) and re-listed companies. The proposal addresses concerns over price suppression caused by current trading frameworks, particularly the use of dummy price bands and base price setups, which have led to artificially suppressed trading values. To rectify this, SEBI plans to change the base price calculation for re-listed scrips. Currently, if a company's trading suspension is lifted after more than a year, its base price defaults to Rs 10, based on the lower of the face value or older book value. SEBI's new approach will utilize the latest closing price if the suspension lasts less than six months, or fresh valuation certificates from independent chartered accountants if the suspension exceeds six months. Additionally, SEBI proposes to enhance automation in trading and allow dynamic adjustments to price bands, aiming to improve market liquidity. The public and market stakeholders are invited to provide feedback on these changes by June 11, 2026.