The Securities and Exchange Board of India issued a circular halving the listing timeline to three days from the close of an initial public offering.
The revised circular, bringing down IPO listing time from T+6 days to T+3 days, would be made applicable in two phases, according to SEBI. For issues on or after Sept. 1 till Nov. 30, the new timeline would be voluntary. However, it would become mandatory from Dec. 1.
In its June board meeting, SEBI approved a proposal to reduce the listing timeline to T+3 days. The change is expected to benefit issuers who will get money faster, and investors will be able to get their allotted shares in half the time.
The regulator has also provided an indicative timeline for the completion of the issue. According to the regulator, the application process should be completed within 5 p.m. of the closing date. Modification of the bid, too, would be allowed until such time. Finalisation of applications and rejections shall be done by 6 p.m. the following day (T+1).
Once approved by the stock exchanges, funds can be deducted from the ASBA accounts of investors and must be completed by 2 p.m. on the T+2 day. The stock exchanges must also receive listing applications by 7:30 p.m. on the same day. Once this is completed, advertisements for allotments must be notified on the company website by 9 p.m., and listing can commence on the third day.
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