Sebi Brings Down IPO Listing Time To 3 Days, Investors To Benefit

Capital markets regulator Sebi on Wednesday has brought down the timeline for listing of shares on stock exchanges after the closure of Initial Public Offerings (IPOs) to just three days from current six days. The move is likely to benefit investors and issuers.

The new listing timeframe will be voluntary for all public issues opening on or after September 1 and mandatory for all the issues which come after December 1, the Securities and Exchange Board of India (Sebi) said in a circular, according to a PTI report.

The decline in timelines for listing and trading of shares will offer benefits to both issuers and investors. Issuers will have quicker access to the capital raised thereby boostnig the ease of doing business and the investors will have the opportunity for having early credit and liquidity for their investment.

''It has been decided to reduce the timd e taken for listing of specified securities after the closure of public issue to three working days (T+3 days) as against the present requirement of 6 working days (T+6 days). 'T' being issue closing date,'' Sebi said. The regulator said that the compensation to investors for the delay in unblocking of ASBA application money shall be computed from T+3 day.

Sebi said that Registrar to an Issue would undertake third-party verification of the applications by matching the PAN available in the demat account with the PAN available in the bank account of the applicant. In instances of mismatch, such applications would continue to be considered invalid applications for finalising the basis of allotment, added the PTI report.

The move came after the board of Sebi approved a proposal in this regard in June.