In an X handle, Kamath wrote, “Sure, things can be better, but it is crazy how transparent and safe the Indian markets are compared to the US, all thanks to SEBI and the exchanges. It is not just Fidelity; even other big brokers seem to have ‘flipping’ restrictions in place.”
Fidelity’s strict anti-flipping rules for SpaceX IPO
The screenshot, which has been shared by Kamath from Fidelity’s policy, outlines significant penalties for investors allocated SpaceX shares who choose to sell early:
According to the policy, investors can sell without being labelled a “flipper” only from the 16th calendar day after the IPO begins trading. While the disclosure notes that investors are technically free to sell whenever they wish, doing so within the first 15 days impacts future IPO participation through the broker.
Retail access and flexibility in India
In contrast, Indian IPOs allow retail investors to sell on the listing day itself with no such broker-imposed restrictions or long-term bans tied to their identity. This has often led to significant listing gains for retail participants, though it has also drawn criticism for encouraging speculative flipping.
Kamath’s comments come at a time when SpaceX’s IPO has generated global buzz, offering a rare look into how major US brokers manage allocations and discourage short-term selling to protect issuer and institutional interests.
How does social media react?
Kamath’s post sparked a debate on the X handle. Some users have agreed with Kamath on SEBI’s role in settlement and retail safeguards, while others pointed to challenges like high Securities Transaction Tax (STT). Users also noted that while Indian markets offer more flexibility, they lag in nurturing trillion-dollar companies or deep innovation-driven listings.
