The Securities and Exchange Board of India (Sebi) on Tuesday asked stock exchanges and other market intermediaries to ensure that companies get listed within six working days of completing their initial share sale and the norms would be effective from January 2016.
To ensure more transparency, the bourses would also be required to provide investors with details about status of their public issue applications through SMS and e-mail.
As part of streamlining the process for public issue of shares and convertibles, Sebi has reduced the time taken for getting listed to six working days from earlier twelve days from the day the offer is closed. Regulations in this regard have been notified.
All days, excluding Sundays and bank holidays, would be considered as working.
In a circular providing detailed guidelines related to reduced listing time, the market regulator said all intermediaries should co-ordinate with one another to ensure completion of listing of shares and commencement of trading by T+6.
“Similar to the systems prevalent in case of secondary market transactions, the stock exchanges shall develop the systems to facilitate the investors to view the status of their public issue applications on their websites and sending the details of applications and allotments through SMS and e-mail alerts to the investors,” it noted.
Besides, Sebi has said that details of commission and processing fees payable to each intermediary and the timelines for payment need to be disclosed in the offer document.
Investors applying in a public issue should use only Application Supported by Blocked Amount (ASBA) facility for making payment. They would have to just write their bank account numbers and authorise the banks to make payment in case of allotment by signing the application forms, "thus obviating the need of writing the cheques", the circular said.
Necessary amendments have been made to Sebi (Issue of Capital and Disclosure Requirements) Regulations, 2009 for reducing the listing timeline.
The changes are also aimed at broad-basing the "reach of investors by substantially enhancing the points for submission of applications".
The circular, which would be applicable for all public issues on or after January 1, 2016, has been addressed to stock exchanges, depositories, stock brokers, merchant bankers, registrars to an issue and share transfer agents and depository participants bankers to an issue.
