Trading in the Reliance [Get Quote] Power's initial public offer in the grey market (the unofficial market) has come to a standstill.

This is for the second time in less than two months that the deals were suspended by grey market operators. The trading has come to a halt on speculations that the company's IPO is unlikely to hit the market by the second week of December.

Grey market trading involves punters betting on the listing price of upcoming IPOs. It is judged by brokers as an indication of how the share offering will fare with regard to subscriptions and the premium on the listing day.

Most of the activities are concentrated in Ahmedabad, Rajkot and Kolkata.

Reliance Power had set a trend in the grey market, with the trade picking up in the unofficial market even before the company had fixed its price band.

The Securities and Exchange Board of India (Sebi) has asked for several clarifications from the company, making it difficult for the IPO to hit the market as scheduled.

Printing of IPO application forms, roadshows and other processes needed at least 2-3 weeks before launching the public issue, said a source in the grey market.

In mid-October too, the grey market in the Reliance Power offer came to a halt for a few days following Sebi's proposal to curb inflows through participatory notes (P-notes), which led to a crash in the stock markets.

Traders feared that RPL could face the same hurdles that had hit the DLF issue. DLF's IPO was delayed by more than six months.

When the Anil Dhirubhai Ambani Group issued a clarification that the issue was on course, trading in the grey market started again in the third week of October.

In the Rajkot market, premiums are quoted at Rs 60 for RPL, but no deals are taking place. The market buzz is that the RPl issue may now hit the market only in early January after getting the Sebi clearance.