When-listed Platform

When-listed Platform Latest News

The Securities and Exchange Board of India (Sebi) is looking to launch a “when-listed” platform.

About When-listed Platform

• It is for trading of shares of companies that have finished their initial public offering (IPO) and are yet to be listed on stock exchanges.
• This is aimed at reducing the activity in the grey market, which is largely unregulated and has a significant influence on listings.
• Present timeline of listing shares in India
  • At present, 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.

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What is the Grey Market?

• It 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.
• Many investors look at the premium offered in the grey market for stock of a company which has launched an IPO, before considering investing in the offer.
• To curb grey market activity, SEBI is working on launching ‘when-listed’ platform

When-listed Platform FAQs

Q1: What is the grey market for stocks?

Ans: It is an unofficial financial securities market

Q2: When can a company launch an IPO?

Ans: To launch an IPO, the company must submit its annual financial reports for the last three years to the NSE.

Q3: What is the difference between listed and unlisted companies in UPSC?

Ans: The listed companies in India- are regulated by the Security and Exchange Board of India(SEBI). Unlisted companies are not controlled by any governing body and follow less stringent laws than listed companies.

Source: IE