Sebi halves IPO listing time from T+6 to T+3 to benefit investors, issuers

Capital markets regulator Securities and Exchange Board of India (Sebi) on Wednesday cut the timeline for listing of shares on stock exchanges after the closure of Initial Public Offerings (IPOs) from T+6 to T+3 (T here refers to the days of the closure of issue). This is being done by the regulator to reduce the time period from the date of issue closure to the date of listing of shares through public issues. As per the Sebi circular, the new listing timeframe will be voluntary for all IPOs opening on or after September 1 and mandatory for all the issues which come after December 1,  2023.

Sebi halves IPO listing time to 3 days

"It has been decided to reduce the time 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.

The reduction in timelines for listing and trading of shares will benefit both issuers as well as investors.

Issuers will have faster access to the capital raised thereby enhancing the ease of doing business and the investors will have the opportunity for having early credit and liquidity for their investment.

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.

The move came after the board of Sebi approved a proposal in this regard in June. As per its statement issued then, Sebi had said that the issuers will have faster access to the capital raised, thereby enhancing the ease of doing business and the investors will have an opportunity for having early credit and liquidity of their investments.