Share Market: SEBI is thinking of bringing a system where investors will be allowed to trade shares in a regulated way after the closure of the IPO and till the listing period.
Share Market: Market regulator SEBI plans to launch a platform where shares can be bought or sold even before they are listed. Giving information about this in a program today, SEBI Chairperson Madhabi Puri Buch said, “Investors remain interested in shares from the time they are allotted to the time trading begins.
During this time, if investors want to trade, they should be given a chance to do so legally.” Trading in IPOs before listing After the shares are allotted to investors and before their listing on the stock exchange, trading continues in the grey market. Madhavi says that a platform should be created for investors interested in such trading, where they can continue it regularly instead of doing it informally. Regulated trading of IPO shares
He said in a conversation during the program that even though trading in the market has not started, but allotment means that investors have become entitled to those shares. At present, the shares are kept frozen in the demat account till listing, so that trading of unlisted shares can be stopped. Now under this new system, after the IPO shares are transferred to the demat account, their trading will be allowed till listing.
SEBI took this step because of this
SEBI has taken this step to crack down on irregular trading in the gray market. In the last few years, there has been a surge in the number of IPOs. The atmosphere of the stock market was also bustling at the beginning of the year. In the first two weeks of the year, many companies launched their IPOs, while there are many more companies in the queue.
What is the gray market?
Let us tell you that the gray market is an unofficial and unregulated market, where shares of companies bringing IPOs are bought and sold. Here trading takes place outside the rules of SEBI. In such a situation, SEBI is not responsible for any fraud with you in the grey market.
