‘When-listed’ Platform

About ‘When-listed’:

• It has been launched for trading of shares of companies that have finished their Initial Public Offering (IPO) and are yet to be listed on stock exchanges.
• It is aimed at reducing the activity in the grey market, which is unregulated and has a significant influence on listings.
• Present timeline of listing shares in India:
  • Once the IPO is closed, shares have to be listed on trading platforms in trading plus three working days (T+3), with T being the closing day of the offer. The allotment of shares is done on T+1 day.
  • In the period between the allotment of shares and listing day, investors trade in the grey market.

What is Grey Market?

• It refers to an unofficial trading of securities even before they are listed on a stock exchange. This is an unregulated market and works on demand and supply.
• Many investors look at the premium offered in the grey market for stock of a company which has launched an IPO, before considering investing in the offer.