We can’t trade with intraday margin on IPO stocks on listing day.
But after how many days after listing day we can trade with intraday margin in IPO stocks in dhan.
In Some stock dhan is not allowing with intraday margin but other broker is allowing to trade with intraday margin.
Is there exchange specific rule or it depends on broker.
Please clarify
Intraday margins on IPO stocks vary from broker to broker, and also some guidelines on the type of stock. Typically intraday margins are decided by the Risk teams at Stock Broking platforms and a large function of that is understand the quality of company + liquidity of the stock to ascertain trading volumes + internal controls.
When the stocks are listed, many if the factors are unknown and it typically takes a few days to understand. Earlier IPOs used to trade few % up or below on the listing days, now they are seen getting listed > 50%+, with that things change.
For large companies, we have seen trading patterns to be a bit predictable when the stocks lists - in such cases intraday is allowed by the Risk teams, and in some cases they usually review in few days. At Dhan our Risk teams evaluates stocks on a weekly basis for inclusions or rejections, and otherwise based on how exchange guidelines move.