Come December, all public issues must be listed within 3 days, says market regulator

Mumbai, Markets regulator Sebi on Wednesday cleared the proposal to reduce the listing time for shares in public issues to three days from existing six days, a move that is expected to allow issuers to receive their funds and allottees their securities in a shorter period. The reduced timeline will be voluntary for all public issues opening on or after September 1 and mandatory for the issues on or after December 1.

The decision was taken at the meeting of the board of Sebi here.

Briefing reporters after the meeting, Sebi Chairperson Madhabi Puri Buch said the decision to reduce the listing time to three days is a "global first and I am sure it will also be glitchless as all market participants have tested its applicability".

The Securities and Exchange Board of India (Sebi) said the decision has been taken after extensive consultation with all stakeholders, including anchor investors, Registrar & Transfer Agents, broker-distributors, and banks, among others.

The board has approved the proposal for reducing the time period for listing of shares in Public Issue from existing 6 days to 3 days, from the date of issue closure (T Day).

"The revised timeline of T+3 days shall be made applicable in two phases i.e. voluntary for all public issues opening on or after September 01, 2023, and mandatory on or after December 01, 2023," Sebi said in a release.

With the reduction in listing timeline, Sebi said issuers would receive their funds and allottees would receive their securities in a shorter time period, and subscribers who were not allotted shares would receive their monies back quickly.

Besides, kerb trading of securities, if any, will be curbed, and resources of all stakeholders like stock exchanges, banks, depositories, and brokers in the public issue process will be deployed for a shorter period, the release said.