SEBI shortens the listing period from T+6 to T+3 and makes it mandatory starting on December 1

10 Aug 2023 , 12:06 PM

According to a circular released on August 9, this will be a choice for public issues opening after September 1, 2023, and it will be a requirement for issues opening after December 1, 2023.

The market regulator has shortened the amount of time needed for securities to list after a public offering closes from the previous six working days to just three.

The securities will now need to be listed on T+3 day as opposed to the present T+6 day since T will be the issue-closing date. For public issues starting after September 1, 2023, this will be a choice, and for issues starting after December 1, 2023, it will be a mandate.

The amended deadlines for listing certain securities and the other activities related to the public offering were laid forth in a Securities and Exchange Board of India (Sebi) circular dated August 9.

As a result, on T day, investors will submit their applications, bids will be modified, depositories will confirm the bid information, there will be reconciliation of UPI mandate transactions, the UPI mandate will be accepted, and the issue will be closed.

By T+1 day, all third-party checks on UPI applications, third-party checks on non-UPI applications, final certificates being submitted, rejections being finalized, bases being finished, and bases being approved by the stock exchange are to be completed.

Fund transfer instructions for debit and unblocking must be issued and finished on T+1 day in distinct files.

On T+2 day, the company should also complete the crediting of shares, file the listing application with the stock exchanges, issue the trading notice, and publish the allotment advertisement on the appropriate website.

By T+3 day, but no later than T+4 day, the newspaper advertisement for the allocation can be published. Trading in the shares will begin on the T+3 day.

The circular also stated that public issue offer documents must include information about the T+3 schedule for listing.

The circular clarified that compensation to investors for the delay in releasing ASBA application funds (if any) should be computed from T+3 day itself under general directions.

The instructions also stated that for Direct Bank ASBA and Syndicate ASBA applications, the self-certified syndicate banks (SCSBs) must confirm 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 applicant’s bank account must be included in the bidding information on the Stock Exchange prior to blocking ASBA application funds in the applicant’s bank account.

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