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Capital market regulator Securities and Exchange Board of India (SEBI) has proposed to halve the time taken for the listing shares on stock exchanges after the closure of the initial public offer to three days from six.
In a consultation paper, SEBI said the proposed reduction in timelines for the 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 an opportunity to have early credit and liquidity of their investment, it said.
The market regulator, in November 2018, introduced Unified Payment Interface as an additional payment mechanism with an Application Supported by Blocked Amount for retail investors and prescribed the timelines for listing within six days of closure of the issue (T+6). ‘T’ is the day of closure of the issue.
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Over the last few years, SEBI ensured that a series of systemic enhancements had been undertaken across all the key stakeholders of the IPO ecosystem to streamline the activities involved in processing public issues which will pave the way to reducing the listing timelines from T+6 to T+3.
The public can make their comments on the subject till June 3.
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