SEBI to cut listing time of IPOs

Securities Exchange Board of India (SEBI), market regulator is trying to make primary markets more efficient. It will bring down from six days to four days, what  presently takes six days after the close of bidding in the initial public offer (IPO) for a company to list on stock exchanges. Earlier, SEBI was successfully able to bring down issue timing from T+12 to T+6.

Thus, it will help to reduce investors’ funds locked in period. SEBI team is working towards reducing the listing-gap to meet the global standards.

According to SEBI data, during Q1FY17, 19 IPOs hit the market raising Rs 5862 crore. A substantial amount of money is being raised in the first half year. The IPO market concerned current financial year is the best year after gap of several years.

For two out of the 15 IPO issues, the number of retail investors has crossed one million. This shows increasing retail investors faith and confidence in IPO markets. This shows how much appetite people have to invest in the markets if an issue can be brought with reasonable and affordable price. SEBI has also asked companies and investment bankers to exercise caution over disclosures and IPO pricing.