The markets regulator, SEBI, may introduce a regulated platform where pre-IPO (initial public offering) companies can trade after making certain disclosures, its chairman Tuhin Kanta Pandey said on Thursday.
This initiative would be on a pilot basis, he said.
Speaking at an event organised by FICCI, Pandey said pre-listing information is often not enough for investors to make an investment decision.
He hinted at an initiative “on a pilot basis for a regulated venue where pre-IPO companies can choose to trade subject to certain disclosures.”
This initiative is expected to eliminate unnecessary processes and pain points that cause avoidable friction in fundraising, disclosures and investor onboarding, he said.
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Additionally, this will explore emerging areas, products and asset classes that create both demand and supply of capital.
When asked whether there is any discussion with depositories on the pre-IPO trading platform, he said, “This is only in principle with what I’m stating”.
This new platform may permit investors to trade shares in a regulated manner in the three-day period between IPO allotment and listing. This initiative may replace the existing unregulated grey market, which currently operates during this period.
