{"id":324470,"date":"2025-01-24T11:42:51","date_gmt":"2025-01-24T06:12:51","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=324470"},"modified":"2025-01-24T11:42:51","modified_gmt":"2025-01-24T06:12:51","slug":"sebis-when-listed-platform","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/sebis-when-listed-platform\/","title":{"rendered":"Sebi\u2019s \u2018when-listed\u2019 platform"},"content":{"rendered":"<p><strong>News: <\/strong>The <a href=\"https:\/\/forumias.com\/blog\/securities-and-exchange-board-of-india-sebi\/\" target=\"_blank\" rel=\"noopener\">Securities and Exchange Board of India (SEBI)<\/a> is planning to launch a &#8220;when-listed&#8221; platform.<\/p>\n<h2>About &#8220;when-listed&#8221; platform<\/h2>\n<ul>\n<li>This platform will allow trading of a company&#8217;s shares between the allotment of shares after an IPO and their official listing on stock exchanges.<\/li>\n<li>The platform aims to reduce \u2018grey market activity\u2019 in companies\u2019 stocks.<\/li>\n<\/ul>\n<table style=\"width: 100%;border-collapse: collapse;border-style: solid;background-color: #f0fcfb\">\n<tbody>\n<tr>\n<td style=\"width: 100%\"><span style=\"text-decoration: underline\"><strong>Grey Market<\/strong><\/span><\/p>\n<div class=\"flex max-w-full flex-col flex-grow\">\n<div class=\"min-h-8 text-message flex w-full flex-col items-end gap-2 whitespace-normal break-words text-start [.text-message+&amp;]:mt-5\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"aed84bb4-efe3-4694-8c6b-d55277401d96\" data-message-model-slug=\"gpt-4o-mini\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<ul>\n<li>The grey market is an <em>unofficial, unregulated market<\/em>.<\/li>\n<li>It involves trading securities or goods <em>before they are officially listed or released<\/em>.<\/li>\n<li>In the context of stocks, it refers to trading shares before they are publicly listed on a stock exchange.<\/li>\n<li>Trades in the grey market are <em>based on supply and demand<\/em>, with no actual delivery of shares.<\/li>\n<li>Investors buy or sell shares based on speculation.<\/li>\n<li>The grey market can influence market sentiment, leading to volatility or distorted perceptions of a stock&#8217;s value.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"mb-2 flex gap-3 empty:hidden -ml-2\">\n<div class=\"items-center justify-start rounded-xl p-1 flex\"><\/div>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Current timeline for listing of shares:<\/strong><\/p>\n<ul>\n<li>After the IPO bidding process closes, shares must be listed on stock exchanges within <em>T+3 (trading plus three working days).<\/em><\/li>\n<li>The allotment of shares takes place on T+1 day, one day after the bidding ends.<\/li>\n<li>The gap between the allotment and listing day leads to grey market trading by investors.<\/li>\n<li>SEBI aims to reduce this pre-listing grey market trading activity.<\/li>\n<\/ul>\n<p><strong>Mechanics of Grey Market Trading:<\/strong><\/p>\n<ul>\n<li>Grey market activity begins when a company announces an IPO.<\/li>\n<li>Brokers set a price band and establish a premium above it.<\/li>\n<li>Investors place bids to buy or sell shares at these inflated prices.<\/li>\n<li>The opening price on the listing day determines the settlement of trades.<\/li>\n<li>Investors face the risk of the stock opening lower than expected, which could lead to potential losses.<\/li>\n<\/ul>\n<p><strong>Benefits of the When-Listed Platform:<\/strong><\/p>\n<ul>\n<li>The platform allows investors to sell their allotments immediately after confirmation.<\/li>\n<li>It aims to eliminate the need for grey market trading by offering a regulated environment for pre-listing transactions.<\/li>\n<li>According to Sebi, the platform will enhance market integrity.<\/li>\n<li>It aims to protect retail investors from potential losses due to grey market fluctuations.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: The Securities and Exchange Board of India (SEBI) is planning to launch a &#8220;when-listed&#8221; platform. About &#8220;when-listed&#8221; platform This platform will allow trading of a company&#8217;s shares between the allotment of shares after an IPO and their official listing on stock exchanges. The platform aims to reduce \u2018grey market activity\u2019 in companies\u2019 stocks. Grey&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/sebis-when-listed-platform\/\">Continue reading <span class=\"screen-reader-text\">Sebi\u2019s \u2018when-listed\u2019 platform<\/span><\/a><\/p>\n","protected":false},"author":10367,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,12039],"tags":[11872,10500],"class_list":["post-324470","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-knolls","tag-9pm-daily-factly","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/324470","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10367"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=324470"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/324470\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=324470"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=324470"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=324470"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}