A big change can be seen soon in the case of IPO and listing of shares. The market regulator is trying to speed up the process of listing of shares after the IPO. For this, SEBI has recently given a proposal to reduce the time taken for listing after the IPO is closed. It is proposed to reduce the time taken for listing of the company’s shares after closure. SEBI has talked about reducing this deadline from six days to three days. SEBI says that the proposed reduction in the deadline will benefit both the company bringing the IPO and the investors who subscribe to it.
Can respond till June 3
SEBI has given this Have also sought advice from the people regarding this. Responses to this proposal of SEBI can be given till June 3. It has been said in the consultation paper that this proposal has been prepared after much deliberation. For this, extensive discussions have been held with all the concerned parties including banks, depositors, registrar, NPCI and stock exchanges.
SEBI is constantly making changes
The market regulator says that By reducing the listing timeline, the party bringing the IPO i.e. the company will get capital soon, which will make it easier to do business. On the other hand, investors will get shares soon. SEBI has been continuously making changes regarding the IPO market and IPO procedures for the last few years. SEBI wants to make the entire process transparent and easy, so that the interests of common investors are not harmed and they can easily become part of the market.
These changes happened in November 2018
The market regulator had in November 2018 set a deadline for listing the shares within six days from the close of the issue. This arrangement was named ‘T+6’. In this ‘T’ is the day of closure of the IPO. Now it is proposed to make it T+3. SEBI also included UPI around the same time as an additional payment mechanism for retail investors.
Also read: EPFO added 1.39 crore members in the last financial year, an increase of over 13%
