BS EDIT: Sebi’s plan to curb IPO grey markets

By Business StandardPublished On Jan 24, 2025

The problem with grey markets

Unregulated trading of IPO allotments before listing

Opaque pricing and off-the-books speculation

Sebi’s solution

A “when listed” segment on exchanges

Enables transparent trading of IPO allotments

Why it matters

Transparent transactions with visible prices

Gradual price discovery, reducing listing day spikes

Simplifies capital gains tax clarity

Tackling speculation

Reduces grey market window

Helps regulators track IPO activity

Aligns with faster settlement cycles

IPO market trends

Rs 1.6 trillion raised in 2024 by 91 IPOs

High demand fuels grey market trading

A balanced approach

Transparent and regulated trading space

Supports India’s dynamic, tech-driven markets