New Delhi, Aug. 31 -- A proposed pre-IPO trading platform, floated by the market regulator, could finally unlock liquidity for employees holding stock options (Esops) and early-stage investors. For years, stakeholders in high-growth companies have been stuck until an initial public offering (IPO) or an acquisition event.

Mint examines why this proposal by the Securities and Exchange Board of India (Sebi) matters and what it could change for ESOPs.

Sebi chairperson Tuhin Kanta Pandey recently suggested creating a regulated venue where shares of IPO-bound companies could trade among private investors before listing, under clear rules. The timing is significant: India's IPO market raised nearly Rs.4.3 trillion in FY25, with more listings a...