COs need to list after 3 days from Ipo

Mumbai: Sebi has decided to bring down the time taken for the listing of an initial public offer (IPO) from its closure to just three days from six days.

The board of the market regulator has in principle, approved the proposal of revisiting the public issue process by way of introducing the use of Unified Payment Interface (UPI) with facility of blocking the funds, as a new payment mechanism for retail investor applications submitted through intermediaries.

“This is a significant process reform aimed at reducing the time period for listing of issues from  T+6  days  to  T+3  days. The  compression  in  post-issue  timelines  and  the consequent  early  listing  and  trading  of  shares  will  benefit  both  issuers  as  well  as investors.  Issuers  will  have faster  access  to the  capital  raised  thereby  enhancing  the ease of doing business and the investors will have early liquidity,” Sebi said.  

Under the new process, the regulator informed that there will be no physical movement of retail investor application forms from  intermediaries  to  Self Certified  Syndicate  Banks  (SCSBs). The modalities  for implementation will be worked out in consultation with the stakeholders, Sebi  added.