Description

NSE announces special call-auction for 9 Investment Companies and Investment Holding Companies scheduled for October 29, 2025, following SEBI circular on price discovery mechanism.

Summary

NSE has issued a circular listing 9 Investment Companies (ICs) and Investment Holding Companies (IHCs) that are eligible for a special call-auction mechanism for price discovery, as mandated by SEBI Circular No. SEBI/HO/MRD/MRD-PoD 3/P/CIR/2024/86 dated June 20, 2024. The special call auction is scheduled to be held on October 29, 2025.

Key Points

  • 9 companies identified as eligible for special call-auction mechanism
  • All listed companies have high proportion of assets (51.91% to 99.68%) invested in other listed companies
  • If call auction is unsuccessful on day 1, it will continue on subsequent days until price is discovered
  • Companies range from GFL Limited with 51.91% investment proportion to Welspun Investments with 99.68%
  • Last traded prices vary significantly from Rs. 59.99 (GFLLIMITED) to Rs. 17,228.00 (TVSHLTD)
  • None of the companies have recent buy-back or delisting offers

Eligible Companies

The following 9 securities are eligible for special call-auction:

  1. GFL Limited (GFLLIMITED) - 51.91% assets in listed companies, last traded at Rs. 59.99
  2. Kalyani Investment Company Limited (KICL) - 87.22% assets, last traded at Rs. 4,890.00
  3. Maharashtra Scooters Limited (MAHSCOOTER) - 98.98% assets, last traded at Rs. 17,228.00
  4. Nalwa Sons Investments Limited (NSIL) - 58.09% assets, last traded at Rs. 7,650.00
  5. Pilani Investment and Industries Corporation Limited (PILANIINVS) - 89.28% assets, last traded at Rs. 5,285.00
  6. SIL Investments Limited (SILINV) - 81.88% assets, last traded at Rs. 617.85
  7. TVS Holdings Limited (TVSHLTD) - 2090.39% book value ratio, last traded at Rs. 13,500.00
  8. Vardhman Holdings Limited (VHL) - 374.42% book value ratio, last traded at Rs. 3,833.90
  9. Welspun Investments and Commercials Limited (WELINV) - 99.68% assets, last traded at Rs. 1,076.20

Regulatory Changes

This circular implements the special call-auction mechanism mandated by SEBI for ICs and IHCs that have significant investments in other listed companies. The mechanism is designed to facilitate better price discovery for securities where a substantial portion of company assets are invested in other listed entities.

Compliance Requirements

  • Trading members must note that special call-auctions will be held for these 9 securities
  • Members should be aware that if the call auction is not successful on October 29, 2025, it will continue on subsequent days
  • The auction process will repeat daily until price is successfully discovered for each security

Important Dates

  • Circular Date: October 15, 2025
  • Special Call Auction Date: October 29, 2025
  • Continuation: Daily thereafter until price discovery is achieved (if needed)

Impact Assessment

Market Impact: Medium - This affects trading in 9 specific securities representing investment companies and holding companies. The special call-auction mechanism may lead to improved price discovery for these securities, which have significant investments in other listed companies.

Operational Impact: Trading members need to be prepared for the special call-auction mechanism and understand that the process may extend beyond a single day if price discovery is not achieved initially.

Investor Impact: Investors holding or interested in these 9 securities should be aware of the special trading mechanism and potential price volatility during the price discovery process.

Impact Justification

Medium importance as this affects 9 specific securities with special trading mechanism for price discovery; limited to ICs and IHCs only.