SEBI Reduces Listing Time for IPO Shares in India

via FORTUNEINDIA

The Securities and Exchange Board of India (SEBI), the regulatory authority overseeing the Indian capital market, has announced a significant reduction in the time required to list shares following an initial public offering (IPO). The previous provision allowed for shares to be listed within 6 days of the IPO sale's closure, but this timeframe has now been halved.

Under the new system introduced by SEBI, companies must list their shares within 3 days of the conclusion of the IPO sale. The regulatory body has stated that this revised arrangement will be voluntarily implemented starting from September 1, 2023, and will become mandatory from December 1, 2023.

This development means that IPO allottees will receive their shares three days earlier than before, while those who did not receive shares will be refunded their money in a shorter timeframe. Additionally, the trading of the company's shares will also commence at an accelerated pace following the IPO sale.

It is worth noting that Nepal currently lacks any legal provisions specifying the duration within which shares should be listed after an IPO sale.