IPO There is good news for investors investing in. In the coming time, they will be able to sell the shares allotted in IPOs even before they are listed in the stock market. In fact, capital markets regulator SEBI is considering introducing a system where investors can sell shares in an initial public offering (IPO) as soon as they are allotted. While giving this information on Tuesday, SEBI Chairperson Madhavi Puri Buch said that this is being done to stop unauthorized market activities. He also announced that two top proxy advisory firms are going to launch a portal, which will act as a repository for related party transactions and will be useful for stakeholders to assess the governance standards in the company.
Preparation to stop illegal market
It is noteworthy that in recent times many IPOs have seen huge subscription and many times investors have made huge profits on the day of listing of the shares. In such a situation, the activities of unauthorized market have also increased, where at the time of allotment, shares can be sold on the basis of pre-decided terms. Buch said at an event of the Association of Investment Bankers of India (AIBI) here that we feel that if investors want to do this, then why not give them this opportunity in a properly regulated manner? He told reporters that the idea is that whatever illegal market is going on, we think it is not right. If you have got an allotment and want to sell your right, sell it in the organized market.
Preparation to control IPO boom
This comment comes amid the IPO boom in India. According to data from analytics firm Prime Database, 91 large firms went public in 2024, raising a record ₹1.6 trillion through IPOs. His comments are aimed at curbing illegal practices and promoting fair practices in India’s capital markets. He said that investors’ trust is at the center of SEBI. Buch emphasized that transparency and right approach to mitigating risks should start from the IPO stage itself.
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