SEBI Proposes for reduction of timeline for listing of shares from existing T+6 days to T+3 days

The Securities and Exchange Board of India(SEBI) has proposed to cut down IPO listing timeline to 3 days from 6 days. Sebi, the capital markets regulator, recommended shortening the time it takes for shares to be listed on stock exchanges following the close of initial public offering (IPOs) to three days from six days now.

“The anticipated decrease in deadlines for share listing and trading will benefit both issuers and investors. Issuers will have speedier access to the cash raised, improving the ease of conducting business, and investors will have early credit and liquidity on their investments.” Sebi Stated.

SEBI introduced the Unified Payment Interface (UPI) as an additional payment mechanism with Application Supported by Blocked Amount (ASBA) for Retail Individual Investors in November 2018, and prescribed the timelines for listing within six days of issue closure (T+6), with ‘T’ being the day of issue closure.

Over the last few years, SEBI has ensured that a number of systemic improvements have been implemented across all major players in the IPO ecosystem to simplify the processes involved in the processing of Public Issues, paving the way for listing durations to be reduced from T+6 to T+3.

In its consultation paper, Sebi proposed shortening the time period from the date of issue closing to the date of listing of shares through public offerings from six days to three days (T+3).

The Securities and Exchange Board of India (SEBI) has asked for public feedback on the proposal till June 3. This comes after Sebi conducted comprehensive back-testing and simulations of several important actions involved in the public issue process by all stakeholders, including stock exchanges, sponsor banks, NPCI, depositories, and registrars.

For Official Consultation Paper Download PDF Given Below: