SEBI slashes IPO listing time to 3 days, defers proposal to overhaul TER on MFs; check details
The SEBI board has approved the proposal for reducing the time period for listing of shares in a public Issue from the existing six days to three days, from the date of issue closure (T Day). The revised timeline of T+3 days will be made applicable in two phases. The new listing timeframe will be voluntary for all public issues opening on or after September 01, 2023 and mandatory for the ones on or after December 01, 2023, according to the capitals markets regulator.
“The decision to reduce the timeline for listing follows extensive consultation with all stakeholders, including anchor investors, registrar and transfer agents, broker-distributors, banks, etc. Extensive stress testing has been done to confirm that the transition to T+3 would be smooth,” said SEBI.
With the approved reduction in the listing time, issuers will receive funds and allottees will receive securities in a shorter period of time, according to SEBI.
SEBI Board Meeting Outcome: Key decisions
1.SEBI has also deferred the proposal to regulate the total expense ratio charged by mutual fund houses, which was widely anticipated to be overhauled, earlier in the day. It will introduce board nomination rights for unitholders of Infrastructure Investment Trusts (InvITs), Real Estate Investment Trusts (REITs)
The board has approved the sponsor of InvIT/ REIT “be required to hold a certain minimum unitholding on a reducing scale for the entire life of the InvIT/ REIT”. The mandatory minimum unitholding shall be locked-in and be unencumbered, said SEBI.
2.SEBI has also strengthened disclosure requirements for a set of “high-risk” offshore funds investing in local markets.
‘’Offshore funds that have more than 50 per cent of their assets under management invested in a single group of companies and those that have more than 250 billion rupees ($3 billion) invested in Indian equity markets would need to disclose all its investors,” said SEBI.
The funds owned by the government, sovereign wealth funds, pension funds and public retail funds will be exempted, said the market regulator.
3.SEBI will strengthened the investor-grievance mechanism by integrating the SEBI Complaint Redressal System (SCORES) with the online dispute resolution (ODR) mechanism.
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Updated: 28 Jun 2023, 09:01 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.