Jan 21, 2025 06:05 PM IST
India’s securities market regulator is exploring measures to permit buying and selling of IPO entitlements earlier than itemizing to cut back black market actions
India’s securities market regulator is contemplating steps to formalize buying and selling in preliminary public choices the place bidding has closed, however the shares are but to be listed.
Madhabi Puri Buch, the chairwoman of the Securities and Change Board of India, acknowledged that traders who get allocations could also be permitted to alternate their proper to these shares earlier than the itemizing. (PTI)
The Securities and Change Board of India might enable traders who get allotment, to commerce the entitlement of these shares previous to the itemizing, in response to Madhabi Puri Buch, chairperson.
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By this mechanism, SEBI needs to curb the “black market”, the place such shares are traded unofficially forward of their official debut, Buch instructed reporters in Mumbai.
Whereas such a facility might assist cut back unregulated buying and selling in IPO shares for a sure interval, it doesn’t influence the unofficial market that comes alive as quickly as an organization information for going public.
The potential rule adjustments come at a time when India has emerged as one of many busiest locations for first-time share gross sales on this planet, with greater than 300 firms elevating over $20 billion final 12 months.
Whereas India’s inventory benchmarks have corrected since peaking in September, it has not dampened investor enthusiasm for brand new listings within the South Asian nation.
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Final 12 months, the regulator proposed adjustments in regulation for itemizing of tiny firms after a number of doubtful transactions got here to gentle. SEBI has additionally sought public opinion for an overhaul of guidelines for service provider bankers.
Really useful Subjects Information / Enterprise / SEBI plans new measures for IPO buying and selling amid surge in first-time share gross sales
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