IPO rules changed, listing time brought down further: Sebi 

The Securities Exchange Bureau of India (Sebi) on Wednesday announced that the Initial Public Offering (IPO) listing timeline will bereduced to T+3 days from T+6 days. The new rules, which will come intoeffect in December this year, will allowIPOs to be listed three days after the issue closing date, The Economic Times reported.

“Consequent to extensive consultation with the market participants and considering the public comments received pursuant to the consultation paper on the aforesaid subject matter, it has been decided to reduce the time taken for the listing of specified securities after the closure of the public issue to three working days (T+3 days) as against the present requirement of six working days (T+6 days); ‘T’ being issue closing date,” The Economic Times quoted Sebi as saying.

The offer documents for public issues must properly disclose the T+3 schedule for listing, the reportstated.

For public issues opening on or after September 1, 2023, the new guidelines will be voluntary, and they will be required for issues starting on or after December 1, 2023.

The market regulator said that stakeholders will gain from the shortened listing schedule since issuers and allottees will receive their funds and securities earlier, the report noted.

Additionally, the action guarantees that subscribers who were not given shares would immediately refunds. All stakeholders’ resources, including those of stock exchanges, banks, depositories, and brokers, will be used for a shorter period of time throughout the public offering process.

Companies must complete allocations under the new rules by 6 p.m. on T+1 day. On the T+2 day, funds will be returned to unsuccessful applicants.

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