The Securities and Exchange Board of India (SEBI) is preparing to launch a revolutionary “when-listed” platform, designed to facilitate regulated trading of IPO shares between allotment and listing. This initiative, announced by SEBI Chairperson Madhabi Puri Buch at the 13th AIBI Annual Convention, aims to curb the risks associated with grey market trading by providing a formal, transparent alternative. The new platform will target the period between the allotment of IPO shares (T+1) and their official listing (T+3), enabling investors to trade shares in a secure and regulated environment.
The grey market, an unofficial and unregulated avenue for trading IPO shares before listing, thrives on demand and supply dynamics, often leading to speculative premiums. SEBI recognizes the risks this poses to investor confidence and the broader market. By introducing a “when-listed” platform, the regulator intends to bring these transactions under legal oversight. Buch emphasized the importance of protecting investor interests, stating, “If you got your allotment of shares and want to sell, do it in the organized market.”
Beyond the trading platform, SEBI is streamlining the IPO documentation process to enhance efficiency and transparency. The regulator is working on a standardized IPO template, simplifying the preparation process for merchant bankers and issuers. Buch highlighted that the new format would include provisions for exceptional reporting, allowing deviations while maintaining clarity. This initiative aims to reduce processing time and ensure that investors have access to well-structured, comprehensive information, empowering them to make informed decisions.
The introduction of the “when-listed” platform represents a significant step in modernizing India’s capital markets. It aligns with SEBI’s broader mission to prioritize governance, transparency, and investor protection. By providing a formalized pre-listing trading mechanism, the regulator hopes to eliminate grey market inefficiencies while fostering trust and participation in the equity markets.
With these measures, SEBI continues to redefine the regulatory landscape, addressing market challenges while setting global benchmarks. The “when-listed” platform and the revamped IPO process signal a forward-looking approach, ensuring India’s markets remain robust, transparent, and investor-friendly.
What do you think of these efforts - will it help curb grey market IPO trading or will it just be a way for the regulators to increase tax?
Bhai jada mat bol aj uske baja se humlog ko log kuch nech bolta hai kal se agar time se dene lag jaye na to log hum dono ko chorengi nehi.