‘When-listed’ Platform:
The Securities and Exchange Board of India (Sebi) is looking to launch a ‘when-listed’ platform.
- ‘When-listed’ has been launched for trading of shares of companies that have finished their Initial Public Offering (IPO) and are yet to be listed on stock exchanges.
- It is aimed at reducing the activity in the grey market, which is unregulated and has a significant influence on listings.
- Once the IPO is closed, shares have to be listed on trading platforms in trading plus three working days (T+3), with T being the closing day of the offer. The allotment of shares is done on T+1 day.
- In the period between the allotment of shares and listing day, investors trade in the grey market.
- Grey Market refers to an unofficial trading of securities even before they are listed on a stock exchange. This is an unregulated market and works on demand and supply.
