A big change is going to be seen in the Indian IPO market of the country and this change is happening in India for the first time in the world. Actually, Market Regulator SEBI (SEBI) has given good news for the investors (IPO Investors) investing in Initial Public Offering ie IPO. SEBI has given green signal to implement T+3 formula for applying in IPO. After this the time will now be halved.
Now listing will be done in three days
Market regulator SEBI has decided to reduce the IPO listing time by half. According to a statement issued on Wednesday, after the closure of the subscription process of the IPO offered by any company, the deadline for its listing has been made T+3. Till now T+6 formula was used for this process. That is, within six days of the closure of the IPO, the shares of the said company were listed in the stock market.
The new rule will be implemented in two phases
While approving the implementation of T+3 deadline, SEBI has said that it will be implemented in a phased manner. Under the first phase, it has been kept voluntary for IPOs opening on or after September 1, 2023. In the second phase, it will be compulsorily applicable in the case of IPOs opening on or after December 1, 2023. The market regulator has taken this major decision after discussions with investors, banks, brokers and other concerned people.
What will be the benefit of T+3 formula?
This major decision has been taken in the board meeting of SEBI regarding the changes to be made in the process of IPO listing. This decision of SEBI will speed up the process of listing of IPOs. Along with this, those investors who will not be allotted shares on application in IPO, they will also get their money back soon. This will ensure that the capital raised through IPO reaches the companies faster.
Now companies will have to work like this
According to the rules that have been set for the IPO market at present, companies offering IPOs allot shares 3 days after the end of bidding after the bidding process is closed and on the 5th day stock exchanges get approval for trading in shares. Submits listing application for. At the same time, under the new change, now they will have to do this work by 6:30 pm on the second day of bidding.