SEBI Plans System to Curb Grey Market Trading

The Securities and Exchange Board of India (SEBI) is working on a system that would allow investors to sell shares immediately after being allotted in an Initial Public Offering (IPO), as part of efforts to curb grey market trading.

SEBI Chairperson announced that a “when listed” facility is being planned, which would enable shares to be traded during the three days between allotment and listing.
Discussions are ongoing with two stock exchanges to implement this system in a regulated and organized manner.
The focus of the system is to reduce grey market trading, allowing investors to sell their shares as soon as they are allotted, promoting a transparent trading environment.
SEBI is developing a standard IPO template and has started using artificial intelligence to review IPO documents for enhanced transparency and efficiency.