SEBI proposes halving IPO listing time to 3 days, benefiting issuers and investors

The capital market regulator, the Securities and Exchange Board of India (SEBI), has proposed halving the time taken to list shares on exchanges after the initial public offering closes to three days from six.

In an advisory paper, SEBI said the proposed reduction in share listing and trading schedules would benefit both issuers and investors.

Issuers will have faster access to the capital raised, thus enhancing the ease of doing business, and investors will have the opportunity to obtain early credit and liquidity for their investments.

The market regulator, in November 2018, introduced the Unified Payment Interface as an additional payment mechanism with a Block Amount backed app for retail investors and set timelines for listing within six days of the issuance close (T+6). “T” is the day the case is closed.

Over the past few years, SEBI has ensured that a series of systemic improvements are made across all key stakeholders in the IPO ecosystem to streamline the activities involved in addressing public issues and that will pave the way for reducing listing timelines from T+6 to T+3.

The public can comment on the topic until June 3.