On June 28, Market regulator the Securities and Exchange Board of India (Sebi) said it would decrease the listing timeline after an IPO to three days post-closure of the issue from the present T+6. ‘T’ is the day the issue closes for the subscription.

The revised timeline of T+3 days is made applicable in two phases, i.e., voluntary for all issues opening on or after September 01, 2023, and mandatory on or after December 01, 2023.

This will ensure faster access to the capital raised, enhancing the ease of doing business, and the investors have a chance for early credit and liquidity of their investment.

The decision comes after widespread back-testing and replications by all stakeholders, with stock exchanges, sponsor banks, NPCI, depositories and registrars, for various activities tangled in the public issues.

In the current timeline, the registrar finalised the allotment basis, submitting it to the chosen stock exchange for approval on T+3. In the new timeline, this will be completed on or before 6 PM on T+1.

In 2018, Sebi presented Unified Payment Interface (UPI) as another payment mechanism with an Application Supported by Blocked Amount (ASBA) for retail investors and agreed on a listing timeline within six days of the closure of the offer.
Before that, the listing timeline was 22 days, which was reduced to 12 days.