SEBI Plans Pilot Pre-IPO Trading Platform to Boost Transparency and Investor Access
The Securities and Exchange Board of India (SEBI) is considering launching a pilot pre-IPO trading platform to enhance transparency and investor confidence in the capital markets. The initiative aims to allow companies to trade with necessary disclosures before going public, addressing concerns about the limited availability of pre-listing information.
The proposed platform will be a regulated mechanism designed to simplify fundraising, streamline disclosures, and make investor onboarding more efficient. It will also focus on reducing redundant processes and exploring new areas, products, and asset classes to strengthen both capital demand and supply in the market.
In addition, SEBI is reviewing the issue of weekly derivative expiries and their growing dominance. The regulator confirmed that any changes in contract durations will be implemented through consultations with stakeholders, with the broader goal of maintaining market stability and encouraging deeper participation in India’s cash equity markets.
Highlighting recent reforms, SEBI pointed to measures such as:
- Shortened IPO timelines for quicker access to capital.
- Stronger safeguards including blocking of investor funds and direct payouts.
- Digital-driven processes to lower costs and enhance efficiency for stakeholders.
On the technology front, SEBI has introduced a verified payment channel (UPI VPA subsystem) for registered intermediaries to protect investors from cyber fraud. Further, new guidelines have been issued to enable faster IPO payouts from 2025, benefiting both retail and institutional investors.
The regulator emphasized that these innovations have already contributed to the creation of new asset classes, expansion of the investor base, and the introduction of alternative capital-raising structures. Portfolio Management Services (PMS) and other innovative financial products are now playing a significant role in shaping India’s financial markets.