Through the trading of these 'when-listed' securities investors will get to trade stocks after a company closes its IPO but before they are officially listed in the exchange.

Buch added that discussions are going on with 2 stock exchanges to implement the when-listed facility which will allow shares to be traded during the 3-day period between the allotment and listing.

India’s securities market regulator is considering steps to formalize trading in initial public offerings where bidding has closed, but the shares are yet to be listed.

SEBI is working on introducing a new system that allows trading in shares of companies that are in the process of listing.

Sebi’s proposal to introduce a “when-listed” trading period aims to bring transparency to pre-listing transactions and curb grey market practices. The move underscores the regulator’s broader push for ethical governance and investor trust in India’s booming capital markets.