Mumbai: Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch has said that the market regulatory body is contemplating to introduce a system where an investor can sell shares as soon as they are allotted in an Initial Public Offering (IPO) to curb grey market activity.
Buch confirmed that the top two proxy advisory firms are all set to launch a website which will be a repository of related party transactions. The portal will help in judging the governance standards in a company for any stakeholder.
The SEBI chief’s announcement comes after several IPOs in the recent past recorded high subscriptions and bumper listings. Many of the public issues got listed with huge premium which resulted in the grey market activity of passing on allotted shares.
Buch recalled that the grey market activity was earlier used to be called “curb trading”.
“We feel that if anyway investors want to do that, why not give them that opportunity in a proper regulated way?” Buch said, addressing an Association of Investment Bankers of India (AIBI) event here.
“The idea is whatever is the grey market that is going on, pre-listing, we think that is not suitable. If you got an allotment and want to sell your right, sell it in the organised market,” she explained reporters later.
SEBI Chairperson Madhabi Puri Buch announced plans to allow investors to sell IPO shares immediately after allotment, aiming to regulate the grey market. This move follows numerous IPOs with high subscriptions and significant grey market activity. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
