Sebi May Allow IPO Trade Pre-Listing To Cut Grey Mkt: Buch

To curb grey market activity, the Securities and Exchange Board of India (Sebi) is considering introducing a "when-listed" trading period for securities between the closure of an initial public offering (IPO) and their formal listing on exchanges.

- Neha Joshi

The move, Sebi chairperson Madhabi Puri Buch explained, aims to bring transparency and structure to a phase often dominated by informal and unregulated trading. "Sebi believes that if investors wish to engage in such trades, they should have the opportunity to do so in a regulated manner," Buch said, speaking at an Association of Investment Bankers of India (AIBI) event in Mumbai.

Currently, a three-day gap—T+3—exists between the closure of an IPO and its listing, during which "curb trading" thrives in informal markets. "We are actively considering a 'when-listing' trading period," Buch noted.