SEBI Reduces IPO Listing Timeline on Stock Exchanges by 3 Days Post IPO Closure. New Listing Regulations to Apply from September 1 and Will Benefit Companies and Investors Alike.
Furthermore, the regulatory body has extended the timeline for completing the issuance process. As per regulatory guidelines, the application process will remain suspended for a period of five hours on the day following the closure of the issue. Any improvements or amendments in the application can also be made within this time frame. The final allotment will be made on the T+1 day, or it may be rejected.
Upon approval by the stock exchange, funds will be deducted from investors’ ASBA accounts, and the process will be completed by T+2 days after. Additionally, investors will receive acknowledgments for their applications on the stock exchange’s platform until 7:30 PM on the same day. Subsequently, the company’s website will release allotment announcements at 9 PM, and share listing will occur after a three-day interval. This decision by SEBI will likely instill a sense of confidence and momentum in companies, leveraging the mood set by collective market sentiment, which could potentially accelerate business growth, and also offer investors higher returns on their investments. Post ASBA unblocking, the timeframe for investors to receive emergency funds will remain T+3 days.
In recent years, the regulatory body has undertaken various initiatives to streamline the IPO system and make it more user-friendly. Furthermore, the entire process of share listing, spanning from the submission of draft papers for IPO approval to the culmination of the IPO, has been actively integrated into the streamlined workflow.
In recent years, the regulatory authority has implemented several measures to simplify and enhance the IPO system. Additionally, the process of IPOs, including the submission of draft papers for approval and the subsequent listing of shares, has been seamlessly integrated into the streamlined workflow.