When-listed Platform
29-01-2025
09:31 AM
1 min read

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.
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