SEBI IPO Listing Timeline: Market regulator SEBI has proposed to reduce the time limit for listing on the stock exchanges after the IPO…
Soon a big change can be seen in the case of IPO and listing of shares. The market regulator is trying to speed up the process of listing of shares after the IPO. For this, SEBI has recently given a proposal to reduce the time taken for listing after the closure of the IPO.
Benefits to the company and investors
Market regulator SEBI has proposed to reduce the time taken to list the shares of the company after the closure of the IPO. SEBI has talked about reducing this deadline from six days to three days. SEBI says that the proposed reduction in the deadline will benefit both the company bringing the IPO and the investors subscribing to it.
Can give feedback till June 3
SEBI has also sought consultation from the people regarding this. Responses to this proposal of SEBI can be given till June 3. It has been said in the consultation paper that this proposal has been prepared after much deliberation. For this, extensive discussions have been held with all the concerned parties including banks, depositors, registrar, NPCI and stock exchanges.
SEBI is constantly changing
The market regulator says that by reducing the listing timeline, the party bringing the IPO i.e. the company will get capital soon, which will make it easier to do business. On the other hand, investors will get shares soon. SEBI has been continuously making changes regarding the IPO market and IPO procedures for the last few years. SEBI wants to make the whole process transparent and easy, so that the interests of common investors are not harmed and they can easily become part of the market.
These changes happened in November 2018
The market regulator had in November 2018 set a deadline for listing the shares within six days from the close of the issue. This arrangement was named ‘T+6’. In this ‘T’ is the day of closure of the IPO. Now it is proposed to make it T+3. SEBI also included UPI at the same time as an additional payment mechanism for retail investors.
