Sebi proposes to cut down IPO listing timeline to 3 days from 6 days

The Securities and Exchange Board of India (Sebi) has sought comments from the public till June 3 on the proposal

Press Trust of India New Delhi

Listen to This Article

Capital markets regulator Sebi on Tuesday proposed to reduce the time taken for the listing of shares on stock exchanges after the closure of initial public offerings (IPOs) to three days from six days at present.

The proposed reduction in timelines for listing and trading of shares will benefit both issuers as well as investors.

"Issuers will have faster access to the capital raised thereby enhancing the ease of doing business and the investors will have opportunity for having early credit and liquidity of their investment", Sebi said in its consultation paper.

The markets regulator, in November 2018, introduced Unified Payment Interface (UPI) as an additional payment mechanism with Application Supported by Blocked Amount (ASBA) for retail investors and prescribed the timelines for listing within six days of closure of issue (T+6). 'T' is the day of closure of the issue.

Over the last few years, Sebi has ensured that a series of systemic enhancements have been undertaken across all the key stakeholders of the IPO ecosystem to streamline the activities involved in the processing of public issues which will pave the way to reduce the listing timelines from T+6 to T+3.

In its consultation paper, Sebi has suggested the reduction of the time period from the date of issue closure to the date of listing of shares through public issues from the existing six days to three days (T+3).

Also Read

SEBI plans to restrict borrowing by AIFs to prevent systemic risk

Dharmaj Crop extends gains after listing at 12% premium over issue price

Mankind Pharma IPO to open next week: Check price band, GMP, other details

Sebi plan to prune MF costs: New expense slabs, no additional charges

Divgi TorqTransfer erases listing gains; slides 5% below issue price on NSE

Nexus Select Trust's initial public offering garners 5.4 times subscription

JSW Infrastructure files DRHP with Sebi, plans to raise Rs 2,800-cr via IPO

JSW Infra files for $342 mn IPO to cut debt, fund capital expenditure

Nexus Select Trust REIT IPO subscribed 28% on first day of offer

Should you subscribe to Nexus Select REIT IPO? Here's what brokerages say

The Securities and Exchange Board of India (Sebi) has sought comments from the public till June 3 on the proposal.

This comes after Sebi has done extensive back-testing and simulations by all stakeholders including stock exchanges, sponsor banks, NPCI, depositories and registrars in respect of various key activities involved in the public issue process.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: May 20 2023 | 5:19 PM IST

Explore News