The Securities and Exchange Board of India (Sebi) announced on Thursday a decision to shorten the timeline for listing public issues of debt securities from the current six working days to three working days, aiming to facilitate quicker access to funds. This new schedule will be optional for the first year and compulsory subsequently.
According to a circular issued by Sebi, the timeline for listing public issues of debt securities and non-convertible redeemable preference shares (NCRPS) will be reduced from T+6 working days to T+3 working days. The adjustment is intended to enable faster fund access for issuers and align the listing process with that of non-convertible securities issued via private placement and specified securities.
To simplify compliance for issuers, the T+3 working days listing timeline will be voluntarily applicable to public issues of debt securities and NCRPS that open on or after November 1, 2024, becoming mandatory from November 1, 2025.
Earlier in the week, Sebi streamlined the application process for public issues of debt securities by mandating that individual investors applying for amounts up to Rs 5 lakh through intermediaries must use UPI to block funds. Investors still retain the option to use other methods, such as Self-Certified Syndicate Banks or the stock exchange platform for applications. Additionally, Sebi reduced the period for public comments on draft offer documents to one day for issuers with specified securities already listed and to five days for other issuers.
The minimum subscription period has also been decreased from three to two working days. In situations where there is a revision in the price band or yield, the disclosed bidding period can now be extended by one working day instead of the previous three working days.