The platform would let investors legally trade IPO shares between allotment and listing under SEBI’s oversight, aiming to boost price transparency and curb the risks of unregulated grey market deals.
India’s market regulator SEBI is preparing to launch a new “when-listed” platform that will let investors buy and sell shares in the short window between IPO allotment and the company’s official stock market debut.
The idea is to take what is now an unregulated grey market activity and move it into a safer, transparent system.
A Safer Way to Trade Pre-IPO Shares
SEBI-registered analyst Mayank Singh Chandel explained that at present, many investors trade IPO shares informally in grey markets, which often expose small investors to scams and unfair pricing.
The proposed platform would bring these trades under SEBI’s supervision, making sure prices are visible to all and transactions are carried out in a regulated environment.
How It Will Work
The “when-listed” platform will be developed in partnership with stock exchanges. Investors will now get a legal and regulated way to trade shares in the gap between allotment and listing, with SEBI laying down clear rules and safeguards.
Chandel said this will also bring pricing transparency and confidence in pre-listing trading, while also curbing exuberant volatility that characterises pre-IPO deals.
The new platform would help ensure pre-IPO trading is safer. However, he did not rule out the possibility of losses if a company defers or cancels the listing.
The Bigger Picture
Currently, private platforms like Precize and Stockify already offer ways to trade pre-IPO shares, but SEBI’s version will be the first official, regulated framework.
For retail investors, it could mean a reduced risk of getting caught in risky grey market deals and a fairer shot at early price moves.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<