SEBI may launch platform for pre-IPO trading

Speaking at FICCI's 22nd Annual Capital Markets Conference 2025 held today, SEBI Chairman Tuhin Kanta Pandey said that the market regulatory may introduce a regulated platform where pre-IPO (initial public offering) companies can trade after making certain disclosures.

"With a booming IPO market, investors are eagerly anticipating what's next. Yet pre-listing information is often not enough for investors to take an investment decision.

Can we think of an initiative, on a pilot basis - for a regulated venue where pre-IPO companies can choose to trade, subject to certain disclosures?, SEBI stated.

Tuhin Pandey further said that there 'some key challenges' that need to be deal with first.

Inefficiencies such as unnecessary processes and pain points, which cause avoidable friction in fund-raising, disclosures, and investor onboarding, need to be identified and removed.

Emerging areas, products, and asset classes can be developed to create both demand and supply of capital. Identifying and nurturing these opportunities will help broaden market participation and deepen capital formation.

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."

The proposed platform would allow investors to trade shares in a regulated framework during the three-day window between IPO allotment and listing, potentially replacing the unregulated grey market that currently functions in this phase.

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