Capital markets regulator Securities and Exchange Board of India (Sebi) on Wednesday reduced the timeline for listing of shares in public issues from existing six days to three days.

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The moves come after extensive consultation with all stakeholders including anchor investors, registrar & transfer agents, broker-distributors, banks, etc. Extensive stress testing has been done to confirm that the transition to three days would be smooth.

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The revised timeline of three days would be made applicable in two phases i.e. voluntary for all public issues opening on or after September 1, 2023, and mandatory on or after December 1, 2023.

The regulator said the reduction in the listing timeline is expected to benefit the stakeholders as the 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 money back quickly.

Further, 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.

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".

First Published:Jun 28, 2023 9:03 PM IST