SEBI Chairperson Tuhin Kanta Pandey, speaking at a capital markets conference organized by FICCI on Thursday, proposed the idea of creating a regulated platform for pre-IPO share trading. Though not a formal proposal, Pandey urged intermediaries and stakeholders to consider piloting such a venue, where pre-IPO companies could opt to trade under specific disclosure norms.
With India’s IPO market booming—₹4.3 trillion raised in FY25 and another ₹1.4 trillion expected soon—Pandey highlighted that existing pre-listing disclosures may not offer enough information for retail investors. He pointed out that the growing popularity of unlisted shares comes with considerable risk, as the space remains largely unregulated. Currently, investors must have a demat account, and shares are typically sourced from early investors, employees, or promoters.
Pandey stressed the need for regulatory measures that offer diverse investment opportunities while addressing risks. He called on intermediaries like investment bankers, depositories, and brokerages to identify and resolve existing frictions in fundraising, disclosures, and investor onboarding. His remarks suggest a growing focus on strengthening India’s capital markets and enhancing investor protection.