Markets regulator Securities and Exchange Board of India (SEBI) on Wednesday reduced the timeline for listing of debt securities issued on a private placement basis to three days. Currently, the timeline is four days and the latest move would also expedite the availability of securities for trading by the investors.

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SEBI has listed out the steps involved in pre-listing and post-listing along with relevant timelines, both through Electronic Book Provider (EBP) platform and otherwise. This is to provide more clarity and standardisation in the process of issuance and listing of such securities on the private placement basis.

The new guidelines would come into effect from January 1, 2023, SEBI said in a circular.

The time taken for listing of such securities after the closure of the issue has been reduced to three working days (T+3) as against the present requirement of 4 working days (T+4).

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Under the EBP mechanism, an issuer wishing to list non-convertible securities or municipal debt securities will have to ensure receipt of in-principle approval from the stock exchange prior to the date of providing the placement memorandum and term sheet to the EBP.

It has set a timeline of T-2 or T-5 day for such approval under the EBP platform while the same would be prior to T day for non-EBP platform.

T refers to issue closure date.

Issuer would have to provide the bidding start time and close time under the EBP platform on or before T-1 and then bidding on the EBP would be done on T day.

Subsequently, the issuer would have to ensure receipt of ISIN from a depository prior to pay-in and apply to other depository for admission of such proposed debt issuance by T+1.

On or before T+1/T+2, issue of credit confirmation letter by depositories to issuer and issuers will have to make an application for listing of its debt securities by T+3.

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(Edited by : Anushka Sharma)