Market regulator SEBI has proposed to cut the listing time for shares on stock exchanges, from six days currently to three. The draft proposal is titled, "Consultation paper on reduction of timeline for listing of shares in Public Issue from existing T+6 days to T+3" and comments have been invited until June 3.

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"The proposed reduction in timelines for listing and trading of shares will benefit both issuers and investors. Issuers will have faster access to the capital raised thereby enhancing the ease of doing business and the investors will have opportunity for having early credit and liquidity of their investments," SEBI has observed.

In November 2018, SEBI introduced Unified Payment Interface (UPI) as an additional payment mechanism with Application Supported by Blocked Amount (ASBA) for Retail Individual Investors and prescribed the timelines for listing within six days of closure of issue (T+6), T being the day of closure of Issue.

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Over the last few years, SEBI has ensured that a series of systemic enhancements have been undertaken across all the key stakeholders of IPO ecosystem to streamline the activities involved in the processing of public issues which will pave the way to reduce the listing timelines from T+6 to T+3.

Making a strong case for reduction in listing timelines, the market regulator notes, “The inputs of all stakeholders including Stock Exchange(s), SCSBs, Sponsor Banks, NPCI, Depositories, Registrars have been taken with respect to the proposed reduction in timeline and their readiness to process the public issues in the proposed T+3 framework."

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The regulator said, "Extensive back testing and simulations have been done by all stakeholders including Stock Exchange(s), SCSBs, Sponsor Banks, NPCI, Depositories and Registrars in respect of various key activities involved in the public issue process."

(Edited by : Jerome Anthony)

First Published:May 20, 2023 6:27 PM IST