Sebi reduces timeline for listing shares to T+3 from T+6; mandatory from December 1

Publishing of allotment advertisement on the relevant website should also be done on T+2 day

The market regulator has reduced the timeline for listing of securities after the closure of public issue to three days, from the current six working days.

With T as the issue-closing date, the securities will now have to be listed on T+3 day versus the current T+6 day. This will be an option for public issues opening after September 1, 2023, and will be a mandatory requirement for issues opening after December 1, 2023.

The Securities and Exchange Board of India (Sebi) circular dated August 9 specified the revised timelines for listing of specified securities and various activities involved in the public issue.

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Accordingly, application submission by investors, bid modification, validation of bid details with depositories, reconciliation of UPI mandate transactions, UPI mandate acceptance and issue closure will be done on T day.

Third-party checks on UPI applications, third-party checks on non-UPI applications, submission of final certificates, finalisation of rejections and completion of basis and approval of basis by the stock exchange should be done by T+1 day.

Issuance of fund transfer instructions in separate files for debit and unblock will need to be initiated and completed on T+1 day.

Corporate action execution of credit of shares, filing of listing application with stock exchanges and issuance of the trading notice, and publishing of allotment advertisement on the relevant website should also be done on T+2 day.

Publishing the allotment advertisement in newspapers can be completed by T+3 day but not later than T+4 day.

On the T+3 day, trading in the stock will start.

The circular added that the T+3 timeline for listing shall be disclosed in the offer documents of public issues.

Under general instructions, the circular added that compensation to investors for the delay in unblocking ASBA application monies (if any) shall be computed from T+3 day itself.

The instructions also added that for Direct Bank ASBA and Syndicate ASBA applications, prior to blocking of ASBA application monies in the bank account of the applicant, the self-certified syndicate banks (SCSBs) shall ensure that the PAN mentioned in the application matches with the PAN linked to the bank account of the applicant maintained with the bank; and that the PAN linked to the bank account of the applicant shall be part of the bidding data on the Stock Exchange platform.