SEBI proposes to cut listing time for IPOs from 6 days to 3 days
SEBI recently came out with a consultation paper to cut the listing time for shares on stock exchanges, from six days currently to three. As per SEBI, the proposed reduction in timelines for listing and trading of shares will benefit both issuers and investors. Issuers will have faster access to the capital raised thereby enhancing the ease of doing business and the investors will have opportunity for having early credit and liquidity of their investments. Over the last few years, SEBI has ensured that a series of systemic enhancements have been undertaken across all the key stakeholders of IPO ecosystem to streamline the activities involved in the processing of public issues which will pave the way to reduce the listing timelines from T+6 to T+3.
The inputs of all stakeholders including Stock Exchange(s), SCSBs, Sponsor Banks, NPCI, Depositories, Registrars have been taken with respect to the proposed reduction in timeline and their readiness to process the public issues in the proposed T+3 framework.
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. To achieve the objective of listing of shares on T+3, the timelines proposed in the consultation paper shall have to be followed by all the relevant stakeholders of public issue ecosystem.
Public comments may be submitted by June 03, 2023.
