SEBI IPO Rules: There is good news for investors investing in IPOs of companies. Now the IPO will be listed on the stock exchange only after three days of the closing of the IPO. The stock market regulator SEBI has reduced the timeline for listing of IPOs from T+6 days to T+3. According to the new rules, all the IPOs coming to the stock market from December 2023 will have to get the company listed on the day after 3 days of the closing date.
SEBI said that after issuing the consultant paper, after discussion with market participants and comments received from the public, it has been decided that the listing period of the IPO will be reduced. Now, instead of 6 days after the closing date of the IPO, the IPO will be listed on the stock exchange only on the day after three days of the IPO closing. Companies will have to disclose the timeline of listing in their offer document within three days.
SEBI said that from September 1, 2023, this rule will apply to companies bringing IPOs on a voluntary basis. While it will be mandatory from December 1, 2023.
SEBI said that the reduction in the listing timeline of the IPO would be of great benefit to the investors. They will get their money back soon, so the investors who will be allotted shares will be allotted shares soon. Along with this, the investors whose shares were not allotted will also get their money back soon. According to the new guidelines, companies bringing IPO will have to complete the allotment process soon.
On June 28, 2023 itself, SEBI Chairperson Madhabi Puri Buch said after the board meeting that the stock market regulator SEBI has given great relief to investors investing in IPOs. Companies bringing IPO will now have to list the IPO on the stock exchange only three days after the closure of the issue.
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