What is price methodology in OFS ?

Created by Rushikesh borade, Modified on Wed, 1 May at 12:44 PM by Rushikesh borade

There are 2 Allocation Methodologies 


1. Price Priority: Price Priority is a stock allocation method where preference is given to the highest price bidder. It's also called multiple clearing price as every bidder over clearing price gets allocation (based on price priority) 


2.  Proportionate Basis: Unlike Price Priority where allocation is done on multiple prices here allocation is done on a single price. Every buyer who has bid above or equal to the clearing price gets allocated on a proportionate basis. 

Note: Other than mutual funds and insurance companies no single bidder shall be allocated more than 25% of the size of OFS


For more info: Click Here


Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons

Feedback sent

We appreciate your effort and will try to fix the article