September 27, 2024
New Delhi, India
SEBI
In a move aimed at expediting the listing process, the Securities and Exchange Board of India (SEBI) has reduced the timeline for the listing of debt securities and non-convertible redeemable preference shares (NCRPS) from the existing T+6 working days to T+3 working days. Initially, this new timeline will be optional for a year starting November 1, 2024, and later made mandatory from November 1, 2025.
Key Changes:
- Timeline Reduction: SEBI has cut the timeline from T+6 to T+3 working days for the listing of debt securities and NCRPS.
- Optional Period: The T+3 timeline will be optional for issuers for one year starting from November 2024, before becoming mandatory.
- Faster Fund Access: This change is expected to facilitate faster access to funds for issuers and ensure early credit and liquidity for investors.
Reason for the Change:
According to the SEBI circular dated September 26, the reduction is aimed at aligning the listing timeline of public issues of debt securities and NCRPS with that of other non-convertible securities issued on a private placement basis. This will allow for quicker liquidity and smoother market functioning.
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Failure to List:
If an issuer fails to list the securities within the stipulated T+3 days, all application money will be refunded or unblocked within two working days from the scheduled listing date. Delays in refunds or unblocking beyond this period will incur a penalty interest of 15% per annum payable to investors.
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UPI Mandate:
SEBI also emphasized that investors applying for public issues of debt securities up to ₹5 lakh via intermediaries must use the Unified Payments Interface (UPI) for fund blocking, further streamlining the application process.
Mandatory Compliance:
From November 2025, the T+3 timeline will be mandatory for all public issues of debt securities and NCRPS. Stock exchanges are tasked with monitoring compliance.
SEBI’s move to reduce the listing timeline aims to streamline market operations, enhance liquidity, and boost investor confidence, making it easier and faster for both issuers and investors to engage in debt markets.
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