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Informist, Tuesday, Jan. 21, 2025

 

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--SEBI Buch: To allow 'when-listed' trading of shrs post IPO allotment 
--SEBI Buch: 'When-listed' trading of shrs aimed at curbing grey mkt activity 
--SEBI Buch:In advanced stages of releasing standard template for IPO papers
--SEBI Buch: Using AI tools to assess IPO documents significantly saved time 

 

 

MUMBAI – The Securities and Exchange Board of India is actively considering allowing the trading of 'when-listed' securities as it feels that certain activities in the grey market are not suitable and needed to be curbed, Chairperson Madhabi Puri Buch said at the annual convention of the Association of Investment Bankers of India here.

"If you got an allotment and want to sell your right, sell it in the organised market," Buch said on the sidelines of the event. The regulator is currently working with the BSE Ltd. and the National Stock Exchange of India Ltd. to provide this option to trade investors. 

 

"In my days we used to call it 'kerb trading'. We feel that if in any way investors want to do that, why not give them an opportunity to do that in a proper regulated way," Buch said. She, however, did not give the timeline for implementation of 'when-listed' share trading.

 

SEBI had earlier brought down the settlement time to 'T+3' from 'T+6'. Last year, Buch had said that the settlement time was reduced to allow trading of stocks in the regulated market sooner.

 

Calling related party transactions as an area about which proxy advisors and the markets regulator worry the most, Buch said two major proxy advisory firms are on the verge of launching an 'RPT portal'. The portal will provide a lot of information on related party transactions of various companies. Buch has called this a valuable tool for analysts, investors, and for anyone who is looking to judge the corporate governance practices of any company. 

Buch also talked about efforts taken by SEBI to use artificial intelligence to improve the regulator's activities. One of these efforts includes the release of a standardised template for initial public offering documents, the preparations for which are now in advanced stages.

This tool helps SEBI officials sift information to focus on elements which are not part of the 'standardised' information, but are 'exceptional' in nature. "This will shorten the time to prepare the (IPO) documents for companies, and for us to clear," Buch said. The regulator expects nearly 1,000 IPOs to be filed over the next two years, and the tool may facilitate the same.  End

 

Reported by Anand JC

Edited by Tanima Banerjee

 

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