SEBI’s New IPO Listing Rule: Investors to Get Quicker Refund, Securities within 3 Days from Today

The Securities and Exchange Board of India (SEBI) has introduced a significant change to the timeline for Initial Public Offerings (IPOs), reducing it from T+6 days to T+3 days. Effective December 1, this alteration becomes mandatory for all IPOs, transforming the listing process.

Understanding the Impact Of  New SEBI Rule:

The amended IPO listing timeline mandates companies to list shares within three days of closing an IPO. Initially voluntary from September 1, 2023, this change now applies universally, ensuring swifter access to capital raised through IPOs.

Beneficiaries:

SEBI’s regulatory change aims to benefit both companies and investors. Companies will gain expedited access to raised capital, streamlining the process. Simultaneously, investors will receive securities within the stipulated three-day period, fostering a more efficient investment environment.

Impact on Non-Allocated Subscribers:

Notably, this rule significantly impacts non-allocated subscribers. Under the revised timeline, these individuals will experience accelerated refunds. Allotment finalization is now mandated within a day of an issue’s closure (T+1 day), leading to refunds being processed within T+2 days.

Significance and Outcomes:

SEBI’s alteration marks a significant shift in the IPO listing process, aimed at streamlining market operations, bolstering investor confidence, and facilitating quicker capital flow for companies, ultimately enhancing market efficiency.