The Securities and Exchange Board of India (SEBI) is considering to launch a system which allows investors to sell shares as soon as the allotment is finalised in a maiden offer. Chairperson Madhabi Puri Buch on Tuesday said that this setup could help restrict grey market activity,

Experts note that most grey market activity for IPOs occurs before the issue is launched. IPOs with higher grey market premiums often see strong subscription numbers, making GMP a key factor for investors.

The Securities and Exchange Board of India is considering allowing ’when-listed’ securities to trade on stock exchanges, as investors seek opportunities during the IPO listing process.

Speaking at an event organised by the Association of Investment Bankers of India (AIBI), Buch said discussions were underway with the two stock exchanges to put in place a 'when listed' platform where

India’s securities market regulator is considering steps to formalize trading in initial public offerings where bidding has closed, but the shares are yet to be listed.

SEBI is working on introducing a new system that allows trading in shares of companies that are in the process of listing.

When-listed' securities refer to those securities that are available for trading between the close of a company’s IPO and before its listing

If implemented, this would open the trading window for investors even before a company’s IPO is listed on NSE, BSE. At present, there is a three-day gap between the closure of an IPO and the listing of shares.