Now Reading: SEBI streamlines IPO process, cuts listing timeline to T+3
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SEBI streamlines IPO process, cuts listing timeline to T+3
Markets regulator SEBI has reduced the timeline for listing of shares after an initial public offering (IPO) from T+6 days to T+3 days. This means investors will get credit of shares or…
The Story in Brief
Markets regulator SEBI has reduced the timeline for listing of shares after an initial public offering (IPO) from T+6 days to T+3 days. This means investors will get credit of shares or refunds three working days after the closure of the offer.
The new rule will be optional initially and made mandatory after market preparedness. SEBI chairperson Madhabi Puri Buch said the move will reduce the period during which IPO funds remain locked in and improve ease of doing business for issuers.
The Indian Opinion
Faster listing is good news for retail investors who have seen their money stuck for nearly a week after an IPO. But the real test will be how smoothly brokers, registrars and stock exchanges adapt. SEBI must ensure that the T+3 deadline does not lead to errors in allotment or refunds, which are still common complaints. Will the regulator also fix the application process for retail bidders, who often miss out on large subscriptions? Cleaner markets depend on simpler rules for small investors.
Source: dnaindia.com
This story was synthesised by AI from the source linked above.
