SEBI chairman Madhabi Puri Buch announces 'when securities' trading for IPOSEBI chairman Madhabi Puri Buch announces 'when securities' trading for IPO

On January 21, 2025, SEBI Chairperson Madhabi Puri Buch revealed that the market regulator is considering allowing ‘when-listed’ securities to trade on exchanges before the official listing. This would enable investors to trade shares allocated during an IPO.

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‘When-listed’ securities refer to those allotted to investors during an IPO but not yet listed on the stock exchanges. Currently, there is a three-day window from issue closure to listing, during which curb trading occurs.

Buch emphasized that if investors wish to trade during this period, it should be offered in a regulated manner. This move seeks to reduce unorganised curb trading and provide a legitimate platform for early transactions.

The mechanism would allow shares to be traded between the time they are credited to investors’ demat accounts and the formal listing. This new approach is expected to enhance liquidity and improve market efficiency.

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India experienced a surge in IPOs in 2024, with 91 firms raising a record ₹1.6 trillion. With this regulatory change, SEBI aims to foster more robust trading practices and further develop India’s growing capital markets ecosystem.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.