NEW IPO LISTING RULE: INVESTORS TO GET QUICKER REFUND, SECURITIES FROM 1ST DECEMBER 2023
The Securities and Exchange Board of India (SEBI) has announced a major alteration in the timeline for Initial Public Offerings (IPOs) listing, reducing it from the existing T+6 days to T+3 days. Effective from Friday, December 1, this change will be obligatory for all issues.
What does this mean?
Well, companies launching IPOs will now be required to have their shares listed on the exchanges within a swift three days from the closure of the issue. Notably, since September 1, 2023, this rule has been applicable on a voluntary basis. However, starting December 1, it becomes compulsory for all companies.
Who benefits?
The primary objective behind this regulatory amendment is to benefit both the companies and investors involved. By shortening the listing time, companies stand to benefit by accessing the raised capital through IPOs at an expedited pace compared to the previous timeline. Simultaneously, investors will receive their securities within the stipulated three-day period.
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