Sebi proposes to reduce the IPO listing timeline from T+6 to T+3

In a decision to streamline activities involved in the processing of public issues, Sebi has proposed to reduce the IPO listing timeline from T+6 to T+3 (T here refers to the days of the closure of issue). 

Sebi is targetting to reduce the time period from the date of issue closure to the date of listing of shares through public issues. 

Sebi said that the proposed 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 an opportunity for having early credit and liquidity of their investments," the Sebi said in a statement .

In  November  2018, SEBI introduced Unified  Payment  Interface  (UPI) as  an  additional payment mechanism with application supported by Blocked  Amount (ASBA) for Retail Individual Investors and prescribed the timelines for listing within six days of the closure of the issue (T+6). 

Sebi further said that extensive back-testing and simulations have been done by all stakeholders, including stock exchange(s), SCSBs, Sponsor Banks, NPCI, Depositories and Registrars in respect of various key activities involved in the public issue process.