SEBI to Launch Pre-Listing Trading to Counter Grey Market Activity

The Securities and Exchange Board of India (SEBI) is planning a "when-listed" platform to enable trading of IPO shares immediately after allotment. This initiative aims to curb grey market trading and improve price transparency. Chairperson Madhabi Puri Buch stated that the platform will offer a regulated alternative during the three-day gap between allotment and listing. Discussions with stock exchanges are underway for implementation. The move is expected to reduce unregulated trading, prevalent in cities like Mumbai and Gujarat, while streamlining IPO processes.

Source: Business Standard