Sebi Circular Cuts Debt Securities Listing Timeline to T+3 in Stock Market
Sebi Circular Overview
The capital markets regulator Securities and Exchange Board of India (Sebi) has announced a significant change in the listing timeline for debt securities and non-convertible redeemable preference shares (NCRPS). Effective from November 1, 2024, public issues will see a reduction in the listing timeline from T+6 working days to the new standard of T+3 working days.
Rationale Behind the Change
This shift aims to facilitate faster access to funds for issuers and to provide investors with earlier credit and liquidity of their investments. The circular issued on September 26 outlines that will first be introduced as an option for a one-year trial period.
Implications of Compliance
- The T+3 timeline will be reflected in the Offer Documents of public issues.
- In case of a failure to list securities within three days, application moneys will be refunded within two days.
- Delays in refunds beyond set timelines will incur a 15% interest penalty for issuers.
Future Prospects
Expectations are that adherence to this new timeline will become mandatory starting November 1, 2025. Sebi aims to align public issues of debt securities with those issued via private placements and specific securities, ensuring a streamlined capital market process.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.