New Delhi, November 15, 2017
Market regulator Sebi is considering cutting the number of days taken for listing of a company’s shares on the domestic stock exchanges from the date of closure of its public offering to T+3 or three working days from T+6 or six days at present.
The guidelines regarding the same are likely to be finalised by January 2018, ET Now reported. Eventually, the aim is to reduce the listing time to T+1, the report suggested.
Earlier, the average time taken to list a security from the day of closing of the initial public offering (IPO) was 22 days.
But Sebi in April 2010 announced a reduction in the time between issue closure and listing to 12 working days. Later in November 2015, this period was further reduced to six days (for IPOs from January 1, 2016) and in October 2016 former Sebi Chairman UK Sinha had said that his team had started working to bring down the gap further down to four days.
In February this year, Ajay Tyagi was named as the ninth chairman of Sebi.
Since the market sentiment changes overnight, the more the days to list, the higher the risk is for investors as the bid money is blocked till the listing day. Any weakness in the market also hurts listing day price movement.
[The Economic Times]