The Securities and Exchange Board of India (SEBI) recently made alterations in the timeline for listing shares on stock changes. At present, the listing time allotted to the companies following the closer of Initial Public Offerings (IPOs) is 6 days. On Wednesday, the capital markets regulator halved the listing timeline to three days instead.
Sebi said in a circular that the new listing timeframe will be initiated and be voluntary for all public issues from September 1. However, it will become mandatory for all the issues which come after December 1. “It has been decided to reduce the time taken for the listing of specified securities after the closure of a public issue to three working days (T+3 days) as against the present requirement of 6 working days (T+6 days). ‘T’ being issue closing date,” the market regulator highlighted.
As per the market regulator, third-party verification for applications by comparing the PAN available in the demat account with the PAN available in the bank account of the applicant will be carried out by the registrar to an issue. Applications in case of mismatch would consequently be regarded for finalizing the bases of allotment.
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What does this mean for investors and issuers?
The new listing timeframe makes trading as well as listing of shares beneficial for both issuers and investors. While issuers will obtain faster access to the capital raised, which will facilitate doing business, investors will be able to have early credit and liquidity for their investments.
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