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.
