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Share Market: Market regulator SEBI plans to launch a platform where shares can be bought or sold even before their listing. Giving this information at an event today, SEBI Chairperson Madhabi Puri Buch said, “From the time the allotment of shares starts till the start of trading, investors remain interested in them. During this period, if investors want to trade, they should be given the opportunity to do so legally.
listing From First in IPO trading
After the shares are allotted to the investors and before their listing on the stock exchange, trading continues in gray market. Madhavi says that for investors interested in such trading, a platform should be created where they can continue it regularly instead of doing it informally.
Regulated trading of IPO shares
In the conversation held during the program, he said that even though trading has not started in the market, the allotment means that investors have become entitled to those shares. At present, till the time of listing, the shares are kept frozen in the demat account, 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 the listing.
For this reason SEBI took action
SEBI has taken this step to crack down on irregular trading in the gray market. There has been a rise in the number of IPOs in the last few years. Even in the beginning of the year, the stock market environment was bustling. In the first two weeks of the year, many companies entered the stock market and launched their IPOs, while there are many more companies in the queue.
What is gray market?
Let us tell you that gray market is an unofficial and unregulated market, where shares of companies launching IPO are bought and sold. Trading here happens outside the rules of SEBI. In such a situation, SEBI is not responsible for any fraud with you in the gray market.
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Upcoming IPO: Keep money ready, 6 new IPOs will be launched soon; SEBI gave green signal
