India’s securities regulator SEBI is set to transform the unlisted shares market with sweeping reforms aimed at boosting transparency and investor protection. In a move that could reshape how private company shares are traded, the markets watchdog has finalized key proposals to regulate this opaque segment.
Currently, unlisted shares – those not traded on public exchanges like NSE or BSE – are bought and sold through informal networks, often leading to pricing discrepancies, fraud risks, and limited access for retail investors. SEBI’s blueprint addresses these pain points head-on.
Key changes include mandatory electronic platforms for trading unlisted securities, stringent disclosure norms for companies, and accreditation requirements for brokers. This will create a structured marketplace, making it easier for investors to access reliable pricing data and execute trades securely.
Experts hail the initiative as a game-changer. ‘This will democratize access to high-growth private firms,’ says financial analyst Rajiv Singh. ‘Retail investors have long been sidelined; now they can participate with safeguards in place.’
SEBI’s consultation paper, released recently, drew over 5,000 responses, reflecting widespread industry interest. Implementation is slated for early next year, pending board approval.