SEBI Halves Public Issue Listing Time To Three Days

The market regulator has approved the proposal for reducing the period for listing of shares in public issue from six days to three days.

The revised timeline will be made applicable in two phases, the Securities and Exchange Board of India said in a statement after its board meeting on Wednesday. The reduced timeline will be voluntary for all public issues opening on or after Sept. 1 till Dec. 1, when it becomes mandatory.

The change in timeline will benefit stakeholders in the numerous ways, according to SEBI board. The issuers would receive their funds and allottees would be awarded their securities in a shorter time period. Also, it will mean that subscribers who were not allotted shares would be returned their money back quickly.

The reduced timeline would kill the grey market and efforts to artificially inflate prices.

According to the market regulator, all market participants involved in IPOs have tested the system for T+3 days and it will ensure that resources of all stakeholders like stock exchanges, banks, depositories, and brokers in public issue process will be deployed for a shorter period.