SEBI halves IPO listing timeline to 3 days; details inside

Capital markets regulator Securities and Exchange Board of India on August 9 halved the timeline for listing shares on stock exchanges after the closure of Initial Public Offerings to three days from six days. 

It has been decided to reduce the time taken for the listing of specified securities after the closure of the public issue. The new timeframe is set at three working days (T+3), a significant reduction from the previous requirement of six working days (T+6). In a circular, Sebi explained that ‘T’ represents the closing date of the issue. 

The decision to cut the listing period in half for shares follows the approval of a proposal by the Sebi board during its June meeting. 

Furthermore, SEBI stated in a circular that the revised listing schedule will be optional for all public offerings commencing on or after September 1. However, it will become obligatory for all issues that originate after December 1. 

The regulatory authority has noted that the decrease in timelines for listing and trading shares will yield advantages for both issuers and investors. This adjustment will give issuers quicker access to the raised capital, subsequently improving the efficiency of the business process. Additionally, investors will enjoy the benefit of prompt credit and liquidity for their investments. 

As outlined by the regulator, the Registrar to an Issue will carry out third-party verification of applications by cross-referencing the PAN (Permanent Account Number) in the demat account with the PAN in the applicant’s bank account. 

If discrepancies arise, applications with mismatches will still be regarded as invalid during the process of finalizing the basis of allotment. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.