IPO listing time reduces from T+6 to T+3

SEBI has made IPO listing faster.

After an IPO closes, the time it takes for a company to list will be reduced from 6 days to 3. This will be implemented in two phases:

:arrow_right: From 1 Sep 2023, companies can list in 3 days if they choose.

:arrow_right: From 1 Dec 2023, all IPOs will have to adhere to the 3-day timeline.

This will happen because the different organizations involved, like Banks, Exchanges, and Registrars, will do their tasks faster. However, changing to this new, faster way involves a lot of work and isn’t as simple as it sounds. :slightly_smiling_face:

Here is a comparison table of old vs new.

Step Existing ETA - Tentative New ETA - As per SEBI circular
IPO window closes 5 pm Monday 5 pm Monday
Allotment is finalised Thursday 9 pm Tuesday
Refunds initiated for non-allottees Friday 4 pm Wednesday
Credit of shares to demat account Next Monday 6 pm Wednesday
Listing 10 am Next Tuesday 10 am Thursday

For more details, check out the SEBI circular.

How does it benefit you?

  1. You get to know about the allotment status earlier.
  2. If you don’t receive an allotment, your money is released more quickly.
  3. If you receive an allotment, you are able to trade the shares earlier.

Overall, given an option, why would you want to wait longer? :sweat_smile: