Stock market regulator SEBI is considering launching a platform where investors can be allowed to trade in the shares of the concerned company even before the formal listing. SEBI Chairperson Madhabi Puri Buch gave this information on the occasion of a program on January 21. “There is a large amount of informal trading during the three-day period from the time the shares are allotted to the time the shares start trading,” Buch said. If investors want to do this, then why not give them such an opportunity on the regulated platform itself.
He said, ‘Trading for such shares may not have started in the market, but if these shares have been allotted, then the investor has become entitled to these shares.’ If the platform is launched for trading before listing, investors will also get the facility to trade in shares immediately after allotment.
At present, shares in the demat account are kept frozen till the time of listing, to prevent trading in unlisted shares or on unorganized platforms. The practice of trading of unlisted shares in the gray market is quite common. In such a situation, this statement of SEBI Chief is very important. The gray market is a completely unregulated market and is often considered an indicator of potential listing gains.
This proposal of SEBI has come at a time when there is a lot of momentum in the primary market in terms of IPOs. The National Stock Exchange (NSE) topped in terms of launching of IPOs in Asia during the year 2024. According to the data of Prime Data Base, this year also seems to be very attractive from the point of view of IPO and SEBI has already received public issue proposals worth Rs 1.80 lakh for approval.