BUSINESS

The Sebi reduces the IPO listing period to three days

The Initial Public Offerings (IPOs) deadline for listing shares on stock exchanges was slashed on Wednesday by the capital markets regulator Sebi, from six days to three.theindiaprint.com the sebi reduces the ipo listing period to three days ipo 11zon

The Securities and Exchange Board of India (Sebi) said in a circular that the new listing timeline would be optional for all public offers commencing on or after September 1 and required for all issues commencing after December 1.

 

Both issuers and investors will benefit from the shorter listing and trading lag times.

 

Investors will have the chance to get early credit and liquidity for their investment while Issuers will have quicker access to the cash raised, improving the convenience of doing business.

 

It has been agreed to shorten the current requirement of six working days (T+6 days) for the listing of certain securities after the close of a public offering to three working days (T+3 days). Sebi said that “T” was the issue closure date.

 

The regulator said that T+3 day will be used to calculate investors’ compensation for the delay in unblocking ASBA application funds.

 

According to Sebi, the Registrar to an Issue would carry out third-party verification of the applications by comparing the PANs present in the demat account and the applicant’s bank account.

 

Such applications would nonetheless be regarded as invalid for establishing the basis of allocation in cases of mismatch.

 

The action was taken after the Sebi board in June accepted a proposal in this respect.

 

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