When-listed’ Platform
30.01.2025
When-listed’ Platform
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For Prelims: About ‘When-list, What is Grey Market? |
Why in the news?
The Securities and Exchange Board of India (Sebi) is looking to launch a ‘when-listed’ platform.
About ‘When-listed’:
- It has been launched for trading of shares of companies that have finished their Initial Public Offering (IPO) and are yet to be listed on stock exchanges.
- It is aimed at reducing the activity in the grey market, which is unregulated and has a significant influence on listings.
- Present timeline of listing shares in India:
- Once the IPO is closed, shares have to be listed on trading platforms in trading plus three working days (T+3), with T being the closing day of the offer. The allotment of shares is done on T+1 day.
- In the period between the allotment of shares and listing day, investors trade in the grey market.
What is Grey Market?
- It refers to an unofficial trading of securities even before they are listed on a stock exchange. This is an unregulated market and works on demand and supply.
- Many investors look at the premium offered in the grey market for stock of a company which has launched an IPO, before considering investing in the offer
Source: The Hindu
“When-listed” platform is an initiative of:
A.Securities and Exchange Board of India
B.Reserve Bank of India
C.World Bank
D.World Economic Forum
Answer A