SEBI Reduces IPO Listing Time To 3 Days According to reports, the revised timeline of T+3 days will be made applicable in two phases
By Teena Jose •
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The Securities and Exchange Board of India (SEBI) has accepted the proposal of reducing the time period for a listing of shares in public issue to three days (T+3) from the existing six days (T+6) from the date of issue closure (T)
Madhabi Puri Buch, Chairperson, Sebi, while attending the press conference, has said that, "We are very confident that T+3 will also happen without a glitch. The decision to reduce the timeline for listing follows extensive consultation with all stakeholders, including anchor investors, registrar and transfer agents, broker-distributors, banks, etc."
She further added, "All the market participants have done their testing and stress testing to figure out that they will be able to meet all the time lines that have been put down. The issuers will get their money quicker, investors will get their shares quicker and those who did not get allotment will get their refunds quicker."
According to reports, the revised timeline of T+3 days will be made applicable in two phases. It would be voluntary for all public issues opening on or after September 1, 2023, and mandatory on or after December 1, 2023, and there is no plan to increase the retail quota in IPOs. Moreover, the regulator will issue a consultation paper proposing norms to shield retail investors from the growing influence of financial influencers.
"We have been discussing finfluencers that their count is increasing. Our thinking on finfluencers is crystallising. We will bring out a consultation paper in one or two months. Teaching about stock markets is something we appreciate but if there is inducement to trade, that you will become crorepati in two years such an inducement is inappropriate," said the capital market regulator chief in the statement.
Mahavir Lunawat, managing director, Pantomath Capital Advisors Private Limited, a Mid-Market Investment Bank, has commented on this development that, "Indian capital market is increasingly becoming hallmark for globally best standards on all critical parameters such as efficiency, transparency, robustness. Public listing process of just 3 days is yet another significant move by Indian capital market regulator."
Milan Sharma, founder of 35North Ventures, has commented that, "The reduction in timeline for listing of IPO is a welcome step by sebi. This will benefit the issuers to receive their funds, and at the same time, allottees will receive their securities in a shorter time period. Also, it will benefit the subscribers who were not allotted shares in IPO."
