India’s share market regulator SEBI (Securities and Exchange Board of India) ruled on August 09 that companies must list their shares three days after the closure of Initial Public Offerings (IPO).
The listing timeframe is optional for public issues opening on or after September 01 but mandatory for all the issues arriving post-December 01, a SEBI circular stated.
While implementing the new listing timeframe, SEBI halved the 6-day provision to 3. The authority believes that the 3-day listing rule will benefit both the issuers and the investors with timely proceedings. Issuers will get faster access to the capital accumulated through the IPO while the investors will get the chance for early credit and liquidity.
Check out: Mero Share Login: Apply IPO, Transfer Stocks, Calculate WACC
“It has been decided to reduce the time taken for a listing of specified securities after the closure of a public issue to three working days (T 3 days) as against the present requirement of 6 working days (T 6 days). ‘T’ being issue closing date,” said SEBI.
The decision to halve the share-listing timeframe was taken at a June 28 meeting.
India has one of the world’s burgeoning share markets with its worth standing at a mammoth US$3.27 trillion.