Sebi Looking to Introduce Regulated Platform for Pre-IPO Trading: Tuhin Kanta Pandey

He hinted at 'an initiative, on a pilot basis - for a regulated venue where pre-IPO firms can choose to trade, subject to certain disclosures'

- OUR CORRESPONDENT

MUMBAI: Markets regulator Sebi chairperson Tuhin Kanta Pandey on Thursday suggested introducing a regulated platform for pre-IPO (initial public offering) share trading, potentially replacing existing grey market operations.

This new platform may permit investors to trade shares in a regulated environment in the three-day period between IPO allotment and listing. Also, this initiative may replace the existing unregulated grey market, which currently operates during this period.

At the same time, Pandey said that Sebi is looking to increase the tenure and maturity of equity derivatives products in a calibrated manner. This would curb trading in such products, where 91 per cent of individual traders incurred losses in FY25.

Speaking at the FICCI Capital Market Conference 2025, Sebi chief said pre-listing information is often not enough for investors to make an investment decision.

In a bid to further deepen the capital market and protect investors, he hinted at "an initiative, on a pilot basis - for a regulated venue where pre-IPO companies can choose to trade, subject to certain disclosures".