IPO listing gap narrows

The stock market regulator Sebi is working towards reducing the timeline for equity Initial Public Offerings (IPOs) and Follow-on Public Offers (FPOs) to four days from existing six days. This reduction in time comes in quick succession to the earlier six days that it took for IPO listing before November 2015, before which it took 12 days for the same. The biggest advantage in reducing the timeline will be to address the market volatility in the interim period.
 For investors, the advantage with this move is that their money will be locked in for a shorter duration, making the listing in India at par with the developed markets. This step will further strengthen the initial public offering distribution system. The T+3 format, when implemented, will mean T+1 will be used to make modifications in bids, T+2 when bankers submit allotment details to exchanges, and T+4 being the day for clearing of payments, validation of bids and demat credit.

olmdesk@outlookindia.com