The Securities and Exchange Board of India (Sebi) has reduced the time for listing specific securities after the closure of a public issue from 6 working days to 3 working days.
According to a release by Sebi, this revision in listing timelines will be applicable voluntarily for public issues opening on or after September 1, 2023. From December 1, 2023, it will become mandatory for all public issues.
Sebi's release further states that the new T+3 listing timeline will be transparently communicated in the Offer Documents of public issues. "The timelines for submission of application, allotment of securities, unblocking of application monies and listing shall prominently be made a part of pre-issue, issue opening and issue closing advertisements issued by the Issuer for public issues," it said.
For Direct Bank Application Supported by Blocked Amount (ASBA) and Syndicate ASBA applications, PAN verification is mandatory before blocking ASBA monies, Sebi said.
Self-certified Syndicate Bank (SCSB) should ensure the PAN mentioned in the application matches the PAN linked to the bank account of the applicant maintained with the bank.
The Registrar to an Issue will verify applications by matching PAN in demat and bank accounts.
Timeline for Listing of Shares through Public Issues
New Timeline In Detail
Submission Date: Investors can submit electronic Applications (Online ASBA via 3-in-1 Accounts) until 5 pm on T day. T represents the Issue Closing Date. For those opting for Bank ASBA through online channels such as Internet Banking, Mobile Banking, and Syndicate UPI ASBA, applications can be submitted until 4 pm on T day. Physical applications through Bank ASBA can be made until 1 pm on T day.
Bid Modification: Bid modification is permitted from the Issue opening date until 5 pm on T day. Filing of Listing Application with Stock Exchanges and issuance of trading notice must be completed before 7:30 pm on T+2 day.
Trading in the newly listed shares will begin on T+3 day.
Sebi's rationale behind this reduction in the timeline is connected to the introduction of the Unified Payment Interface (UPI) as an additional payment mechanism for Retail Individual Investors. By streamlining the IPO process and incorporating innovative mechanisms like UPI, Sebi feels that the reduced listing timeline from six days to three is feasible.