Sebi’s proposal to introduce a “when-listed” trading period aims to bring transparency to pre-listing transactions and curb grey market practices. The move underscores the regulator’s broader push for ethical governance and investor trust in India’s booming capital markets.

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.

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

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

Sebi is looking at introducing a system where an investor can sell shares as soon as they are allotted in an Initial Public Offering (IPO) to curb grey market activity, chairperson Madhabi Puri Buch said on Tuesday.

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.