Price Band on WebNotes

How to fix a price-band rejection on Zerodha

Tue, 12 May 2026 00:00:00 +0000

A price-band rejection on Kite occurs when the limit price you have specified in a buy or sell order falls outside the daily price range permitted by NSE or BSE for that instrument. Exchanges impose these price bands (also called circuit filters or circuit breakers) to limit extreme intraday price swings and protect market integrity.

The rejection message typically reads: “Order price is outside the allowable price band” or “Price is out of the DPR (Daily Price Range)” at the exchange level.

Book building in Indian IPOs

Mon, 11 May 2026 00:00:00 +0000

Book building is the price-discovery mechanism used in the majority of Indian Initial Public Offering (IPO) and Follow-on Public Offer (FPO) transactions, in which the issuer, through the book running lead manager (BRLM), solicits price-and-quantity bids from investors across all eligible categories during a defined subscription window, aggregates the demand schedule to construct an order book, and then selects a final issue price that clears the issue within the constraints set by SEBI (ICDR) Regulations, 2018. The term is borrowed from the analogous process used in international equity capital markets, where investment banks “build a book” of orders before pricing a new equity offering.

Cut-off price in an Indian IPO

Mon, 11 May 2026 00:00:00 +0000

The cut-off price (also written as cutoff price) in an Indian Initial Public Offering (IPO) is a bidding option available exclusively to retail individual investors under the book-building process, under which the investor agrees to accept the final issue price at which the IPO is priced, whatever that price turns out to be within the price band, without specifying a particular price at the time of bidding. A cut-off bid is treated as equivalent to a bid at the upper end of the price band for the purpose of calculating the amount to be blocked under ASBA or UPI ASBA; if the final issue price is lower than the upper band, the excess amount is released to the investor after allotment. The cut-off option is specified by the SEBI (ICDR) Regulations, 2018 as a convenience mechanism for retail investors who do not wish to estimate whether the final issue price will be at the floor, the ceiling, or somewhere within the band.