Capital markets regulator SEBI has proposed to reduce time taken for listing of shares on stock exchanges after closure of initial public offers (IPOs) to three days from six days at present. 

The proposed reduction in timelines for listing and trading of shares will benefit both issuers as well as investors. 

“Issuers will have faster access to the capital raised, thereby enhancing the ease of doing business, and investors will have opportunity for having early credit and liquidity of their investment,” the SEBI has said in its consultation paper.

The markets regulator, in November 2018, had introduced Unified Payment Interface (UPI) as an additional payment mechanism with Application Supported by Blocked Amount (ASBA) for retail investors and prescribed the timelines for listing within six days of closure of issue (T+6). ‘T’ is the day of closure of the issue. 

Over the last few years, the SEBI has ensured that a series of systemic enhancements have been undertaken across all the key stakeholders of the IPO ecosystem to streamline the activities involved in the processing of public issues which will pave the way to reduce the listing timelines from T+6 to T+3. 

In its consultation paper, the SEBI has suggested reduction of time period from the date of issue closure to the date of listing of shares through public issues from the existing six days to three days (T+3).