SEBI Reduces Listing Timeline for Public Debt Securities to T+3 Working Days

resr 5paisa Research Team

Last Updated: 27th September 2024 - 05:44 pm

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On Thursday, 27th September, SEBI announced a cut in the timeline for listing public issues of debt securities from six working days to three. The new timeline will ensure quicker access of funds by the issuers.

The new deadline will be optional in the first year and compulsory thereafter.

Listing timeframe for public issues of debt securities and NCRPS will be cut short to T+3 working days from the current T+6 days, SEBI said in a circular. This is being done to expedite the access of funds for issuers.

Further, the amendment brings parity in listing timeline of public issues of debt securities and NCRPS with non-convertible securities issued through private placement and specified securities.

Further, to ease the compliance burden on issuers, T+3 listing timeline will be made available as an optional facility for public issues of debt securities and NCRPS from November 1, 2024 and shall become compulsory from November 1, 2025.

SEBI eased its application process for public issues of debt securities earlier this week. Retail investors who apply for up to ₹5 lakh through intermediaries have to make use of UPI in the new process for the blocking of funds.

There are other methods, though in which an investor can apply. These include Self-Certified Syndicate Banks and stock exchange platforms.

Also read SEBI Revises Rules, Introduces Fixed Price Mechanism for Voluntary Delisting

Before this, SEBI amended regulations to reduce the time granted for public comment on draft offer documents. The time has been scaled down to one working day for issuers with specified securities listed and five working days for other issuers.

Secondly, the minimum subscription period is reduced from three working days to two working days. The price band or yield, if revised, means that the bidding period can now be enhanced to one working day instead of three working days as stipulated in the offer document itself.

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