IPO listing timeline: The Securities and Exchange Board of India (Sebi), the capital markets regulator, has put forth a proposal to shorten the time it takes for shares to be listed on stock exchanges following the conclusion of initial public offerings (IPOs). Currently, the listing process takes six days, but Sebi suggests reducing it to just three days.

According to Sebi’s consultation paper, this move aims to provide issuers with quicker access to the capital raised, thereby improving the ease of doing business. Additionally, it will offer investors the opportunity for early credit and liquidity of their investment.

Back in November 2018, Sebi introduced the Unified Payment Interface (UPI) as a new payment channel, along with Application Supported by Blocked Amount (ASBA), for retail investors. As part of this implementation, IPOs were required to be listed within six days of closure (referred to as T 6). Now, Sebi proposes to reduce this timeline from six days to three days (T 3) in its consultation record.

Sebi is seeking public feedback on this proposal until June 3, allowing stakeholders to express their opinions and contribute to the decision-making process.

Commenting on this development, A R Ramachandran, Co-founder & Trainer at Tips2trades, shared his thoughts, stating, “The proposal to reduce the listing timeline from 6 days to 3 days is a positive sign for investors. It reduces the waiting period for better listing and helps minimize speculation in the grey market premium (GMP) prices. Additionally, it enables investors who were not allotted shares to gain earlier access to purchasing the stock.”

In a separate initiative, Sebi has also proposed a uniform total expense ratio (TER) across all mutual funds (MFs). The regulator has stated that the consultation record will serve as the foundation for final recommendations, which will be made after considering the feedback from stakeholders by June 1.

Please note that the Securities and Exchange Board of India (Sebi) is seeking public feedback on both the proposal to reduce the listing time for IPOs and the uniform total expense ratio (TER) for mutual funds until the specified deadlines.