SEBI Shortens Listing Timeline for Debt Securities and Non-Convertible Redeemable Preference Shares

The market regulator, Securities and Exchange Board of India, on Thursday came out with a reduction in the listing timeline for debt securities and non-convertible redeemable preference shares (NCRPS) from T+6 working days to T+3.

This new timeline aims to help issuers' access funds quickly so that the investors get improved credit and liquidity.

Under the revised guidelines, the T+3 timeline will be optional for issuers for the first year, beginning Nov. 1, 2024. After this period, it will become a mandatory requirement for all public issues of debt securities and NCRPS starting Nov. 1, 2025.

The change aligns the listing timeline with that of private placements and specified securities, streamlining the process across various financial instruments. To ensure compliance, stock exchanges will monitor adherence to the new timeline.

If an issuer chooses the T+3 listing option but fails to meet that timeline, the rules requiring refunds will only take effect after T+6 working days. This means that if the listing is delayed, the issuer has additional time before they must refund any application money.

Specifically, they must refund or unblock funds within two working days from the scheduled listing date. If they miss this deadline, they will owe interest to investors at a rate of fifteen percent per annum, starting from the scheduled listing date until the payment is made. This provision helps protect investors while giving issuers some leeway in case of delays.