The Securities and Exchange Board of India (SEBI) on May 20, 2023, issued a Consultation paper on the reduction of the timeline for listing of shares in Public Issue from existing T+6 days to T+3 days.
This consultation paper seeks comments/views/suggestions from the public on the proposals pertaining to the reduction of the time period from the date of Issue closure to the date of listing of shares through Public Issues from the existing 6 days to 3 days.
The proposed reduction in timelines for the listing and trading of shares will benefit both issuers as well as investors. Issuers will have faster access to the capital raised, thereby enhancing the ease of doing business. The investors will have the opportunity for having early credit and liquidity for their investments.
Considering the benefits of early listing and trading of shares in public issues for both Issuers and Investors expected to be achieved by the afore-stated reduced timelines from T+6 days to T+3 days, comments are invited from the public on the proposals mentioned in the consultation paper.
The proposals for consultation are as stated:
• Submission of application and modification of bid by Investors.
• Processing of applications by Self Certified Syndicate Banks (SCSBs) and Intermediaries prior to the closure of the public issue.
• Scrutiny of applications with respect to third-party investors.
• Submission of Final Certificates by SCSBs and Sponsor Bank.
• Lock-in of Pre Issue Capital.
• Finalization and approval of the basis of allotment.
• Fund transfer and Unblocking of ASBA application monies.
• Execution of corporate action for credit of shares to allottees.
• Listing and Trading approval.
• Publishing of allotment advertisement.
• Commencement of trading.
The comments may be submitted by any of the following modes latest by June 03, 2023: -
Through Online - The comments may preferably be submitted online at the below-mentioned link: https://www.sebi.gov.in/sebiweb/publiccomment/PublicCommentAction.do?doPubliccomments=yes
Through Email - Alternately, comments may be sent by email to Mr. E Balasubramanian, General Manager ([email protected]), and Mr. Afzal Khan, Manager ([email protected]). While sending the email, kindly mention the subject as “Consultation paper on the reduction of timeline for listing of shares in Public Issue from existing T+6 days to T+3 days”.
