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SEBI chairperson Madhabi Puri Buch said at an event that the regulator is actively looking at allowing 'when-listed' securities to trade on the country's stock exchanges
When-listed' securities refer to those securities that are available for trading between the close of a company’s IPO and before its listing
The chairperson said that there is a lot of interest in investors for trading these shares
Markets regulator Securities and Exchange Board of India is looking to allow trading of shares of companies on the stock exchanges after the close of their initial public offerings (IPO).
SEBI chairperson Madhabi Puri Buch said at an event that the regulator is actively looking at allowing ‘when-listed’ securities to trade on the country’s stock exchanges, Reuters reported.
‘When-listed’ securities refer to those securities that are available for trading between the close of a company’s IPO and before its listing. However, there isn’t any official provision to allow this trade as of now.
The chairperson said that there is a lot of interest in investors for trading these shares. “We feel that if investors want to do that, why not give them that opportunity in a proper, regulated way,” she added.
The statement from the SEBI chairperson comes at a time when India is witnessing a IPO boom since last year.
As per Market Intelligence data, the overall IPO count grew over 22% to 298 by December 3, 2024 from 243 in the entirety of 2023.
Fundraising volume saw an even more dramatic increase, jumping 139% to INR 1.41 Lakh Cr from INR 58,827 Cr in the previous year.
On similar lines, the number of IPOs of new-age tech companies surged to 13 from just five in 2023.
The markets regulator has taken a number of steps in recent times to curb grey market trading and curb the IPO frenzy, especially for companies listing on SME exchanges.
The market regulator also tightened its rules for SME IPOs last year, capping the offer for sale by selling shareholders at 20% of the total issue size. Besides, selling shareholders cannot sell more than 50% of their holding during the IPO.
Among other measures, the markets regulator reduced the timeline for listing for initial public offering to T+3 from T+6 earlier.
