Business

New Delhi, May 23 : The Securities and Exchange Board of India (SEBI) is set to implement a significant change in the initial public offering (IPO) process, aiming to shorten the listing timeline to just three days. This move comes as part of SEBI's ongoing efforts to streamline and expedite the IPO process, providing greater efficiency and convenience to market participants.

SEBI, the regulatory body overseeing India's securities market, plans to implement the shorter listing timeline in order to reduce the time gap between the IPO closure and the listing of shares on the stock exchanges. Currently, this timeline typically ranges from six to twelve days, depending on various factors and regulatory requirements.

The proposed change is expected to bring several advantages to the IPO ecosystem. Firstly, it will enable companies to raise capital more quickly, allowing them to access funds and commence their growth plans at a faster pace. Additionally, a shorter listing timeline will enhance market liquidity by reducing the time investors have to wait before trading their allotted shares.

SEBI's move to reduce the IPO listing timeline is part of a broader strategy to make the Indian capital markets more competitive and investor-friendly. The regulatory body has been taking several measures in recent years to simplify and expedite the IPO process, including the introduction of an online system for submitting IPO applications and the implementation of a Unified Payments Interface (UPI) mechanism for IPO payments.

Shortening the listing timeline to three days will require a coordinated effort from all stakeholders involved in the IPO process, including the company going public, merchant bankers, stock exchanges, and depositories. SEBI aims to ensure that the necessary infrastructure and processes are in place to facilitate a seamless and efficient transition to the new timeline.

Market participants have welcomed SEBI's initiative, considering it a positive step towards aligning India's IPO process with global best practices. A shorter listing timeline not only benefits companies and investors but also improves market competitiveness, as India seeks to attract more companies to go public domestically.

However, it's important to note that while SEBI intends to implement the three-day listing timeline, the specific details and operational aspects are yet to be finalized. The regulatory body will likely consult with market participants and take their feedback into consideration before implementing the change.

In conclusion, SEBI's plan to reduce the IPO listing timeline to three days demonstrates the regulator's commitment to enhancing the efficiency and competitiveness of India's capital markets. If successfully implemented, this move will bring significant benefits to companies, investors, and the overall IPO ecosystem, fostering a more vibrant and dynamic market environment in the country.