Market structure to face shorter IPO timeline test: Industry players

Players in ecosystem will have to work overtime to ensure success

The shift to a shorter T+3 settlement cycle for initial public offerings (IPOs) will be a big test of the domestic market structure, requiring players in the ecosystem to work harder to meet the squeezed timelines, according to industry insiders.

The capital markets regulator, Securities and Exchange Board of India (Sebi), has announced that the transition to the T+3 cycle will be voluntary starting next month and mandatory from December 1.

The new mechanism will necessitate quicker confirmations from banks and speedy verification of permanent account numbers (PANs) for all applicants.

Meanwhile, registrars and depositories will need to obtain approvals,