Capital markets regulator Sebi proposes to trim IPO listing timeline to 3 days

“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.

In November 2018, the markets regulator established Unified Payment Interface (UPI) as a new payment channel with Application Supported by Blocked Amount (ASBA) for retail investors and mandated listing within six days after the closing of IPO (T 6). Sebi proposed in its consultation record that the time period from the date of closure of the issue to the date of listing of shares through initial public offerings be reduced from six days to three days (T 3).

The Securities and Exchange Board of India (Sebi) is inviting public feedback on the proposal till June 3.

By commenting on the development, A R Ramachandran, Co-founder & Trainer-Tips2trades said “The proposal to reduce the listing timeline to 3 from 6 days is a positive sign for investors. It reduces the lag time for better listing thereby reducing speculation in the GMP (grey market premium) prices. Also, it helps investors who weren’t allotted shares to have access to buying the stock earlier than expected.”

Meanwhile, the Securities and Exchange Board of India (Sebi) has proposed a uniform total expense ratio (TER) across all mutual funds (MFs). Sebi stated that the consultation record would serve as a basis for final recommendations after receiving feedback from stakeholders by June 1.