SEBI revises timeline for listing securities post IPO
Mumbai: Securities and Exchange Board of India (SEBI) has revised the timeline for listing securities after the conclusion of a public issue, reducing it from the current six working days to three days.
Effective September 1, 2023, the public issues closing date (T) will see securities listed on T+3 day, with this becoming a mandatory requirement for issues opening after December 1, 2023, said a circular issued on August 9 by the stock market regulator.
The circular outlined the updated schedule for various activities related to the public issue, including investor application submission, bid validation, and depository reconciliation, all of which will take place on T day. Third-party checks for UPI and non-UPI applications, submission of final certificates, and completion of basis approvals will occur by T+1 day.
Initiating and completing fund transfer instructions on T+1 day, along with the credit of shares and filing listing applications with stock exchanges, will be done by T+2 day.
Publishing trading notices, allotment advertisements on relevant websites, and initiating trading in the stock will take place on T+2 day.
The circular emphasized that T+3 timeline for listing will be disclosed in the public issue's offer documents.
The circular also addressed compensation for delays in unblocking ASBA application funds, which shall be calculated from T+3 day.
It stipulated that for Direct Bank ASBA and Syndicate ASBA applications, the PAN mentioned must match the PAN linked to the bank account, and this PAN must also be part of the bidding data on the Stock Exchange platform.
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