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IPO Listing Time Cutting: Capital market regulator SEBI is going to make big changes regarding IPO. Now in just three days you will know the profit. SEBI has proposed that it will reduce the listing time of IPO. SEBI has said that it wants to reduce the listing time of Initial Public Offerings (IPOs) to three days instead of 6 days.
The move is expected to benefit both the company offering the IPO and the investors. According to SEBI’s consultation paper, this IPO listing will help the company to get faster capital and grow the business. Also, it will be easy to do business. At the same time, investors will get quick credit and liquidity in investment.
T-6 rule was introduced in 2018
In November 2018, SEBI started the facility of UPI for retail investors for additional payment or other types of payment. Apart from this, SEBI also introduced the ASBA facility. During that time SEBI had proposed the listing time for 6 days after the closure of the IPO as T+6. T indicates the day of issue closure.
SEBI took many important steps
At the same time, SEBI has introduced many special changes and rules regarding IPO and stock market in a few years. Many beneficial steps have been taken for the shareholders as well as for the new investors. Because of these efforts, instead of T-6, T-3 time has been introduced.
SEBI sought opinion till June 3
SEBI in its letter has suggested reduction in the time period between the date of issue closure and the date of listing of shares through public offer. If this is implemented, the listing deadline will be reduced from six days to three days. SEBI has sought feedback on this proposal till June 3. This step of SEBI is said to be good for all involved in the IPO process including stock exchanges, banks, National Payments Corporation of India, depositories and registrars.
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