Sebi Reduces Timeline for Listing of Debt Securities: Know More

The Securities and Exchange Board of India (Sebi) has decided to cut the timeline for listing the public issue of debt securities to three working days from the current six days.

This change aims to facilitate quicker access to funds, and opting for this change will be optional for the first year and mandatory thereafter. "It has been decided to reduce the listing timeline in case of public issue of debt securities and NCRPS to T+3 working days from the existing timeline of T+6 working days," the Securities and Exchange Board of India (Sebi) said in a circular. Starting from November 1, 2024, the T+3 working day listing timeline will be voluntary for public issues of debt securities and NCRPS, and it will be mandatory from November 1, 2025.

This move aligns the listing timeline for the public issue of debt securities and non-convertible redeemable preference shares (NCRPS) with that of non-convertible securities issued on a private placement basis and specified securities.

Other Moves From Sebi To Streamline Issues

Further, earlier this week, Sebi revamped guidelines for public issues of debt securities, and mandated that retail investors applying for such issues through stock brokers for amounts up to Rs 5 lakh should only use UPI to block funds. Starting from Nov 1, 2024, this rule would apply to public issues of debt securities, non-convertible redeemable preference shares, municipal debt securities and securitised debt instruments.The move aims to streamline the debt securities application process by aligning it with equity shares and convertibles. The use of UPI can reduce the need for physical documentation, making transactions faster and more efficient than traditional banking methods.