Sebi Speeding Up IPO listing time from 6 days to 3 days

Market regulator Sebi recently proposed to speed up the listing process for shares on stock exchanges after initial public offerings (IPOs) are completed. The current six-day listing period would be shortened to just three days, which is expected to be advantageous for both issuers and investors. According to Sebi’s consultation paper, the timelines will get reduced, allowing issuers to access capital raised more quickly and improving business efficiency. Investors will additionally have the chance to get early credit and liquidity for their investments.

Sebi made the Application Supported by Blocked Amount (ASBA) system and the Unified Payment Interface (UPI) available to retail investors in November 2018. At that time, Sebi also established a listing timeline of six days (known as T+6) after the conclusion of an IPO, with “T” standing for the day the issue was closed. Sebi has made significant efforts over the past few years to improve systemic processes across all significant stakeholders in the IPO ecosystem. These initiatives have made it possible to shorten listing timelines from T+6 to T+3.

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The time between the date of issue closure and the date of share listing through public offerings should be cut short, according to Sebi’s consultation paper. The listing timeline would be shortened under the proposed change from the current six days to three days (T+3) Sebi has requested public feedback on this proposal until June 3 in order to compile it. All parties involved in the IPO process, including stock exchanges, sponsor banks, the National Payments Corporation of India (NPCI), depositories, and registrars, conducted extensive back-testing and simulations prior to Sebi’s action. These tests aimed to determine the viability and impact of various crucial public offering-related activities.

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