Tuhin Kanta Pandey, the chairman of the markets watchdog Sebi, stated on Thursday that the agency may launch a regulated platform where pre-IPO (initial public offering) firms can trade following specific disclosures.
He stated that this initiative would be implemented on a pilot basis. Speaking at a FICCI-hosted event, Pandey stated that pre-listing data is frequently insufficient for investors to decide whether to make an investment.
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.
This will also look at new markets, goods, and asset classes that influence the supply and demand for capital.
"This is only in principle with what I'm stating," he responded when asked if there is any conversation with depositories on the pre-IPO trading platform. In the three days between IPO allotment and listing, this new platform might allow investors to trade shares in a controlled way. The unregulated grey market that currently exists during this time may be replaced by this initiative.
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