India: Market regulator reduces IPO listing time, plans to broadbase investor reach

Sebi said it has already made the changes in the existing Issue of capital and disclosure requirements (ICDR) regulations. Photo: Mint

In an effort to halve the timeline for listing and ensure that more investors are able to cash in on public issues, the Securities and Exchange Board of India or Sebi, on Tuesday, said it has decided to reduce the time taken for listing after the closure of issue to six working days from 12 working days at present.

Sebi said it also wants to broad base the reach of investors by substantially enhancing the points for collection of applications meant for initial public offerings (IPO) and other public floats.

The market regulator said it has already made the changes in the existing Issue of capital and disclosure requirements (ICDR) regulations.

Going forward, all investors applying in a public issue will be required to use only Application Supported by Blocked Amount (ASBA) facility for making payment. For this, the investor just needs to write their bank account numbers and authorize the banks to make payment in case of allotment of securities in the issues.

Intermediaries accepting applications from investors will be responsible for uploading the bid along with other relevant details in application forms on the electronic bidding system of stock exchanges and submitting the form to self-certified syndicate banks or SCSBs for blocking of funds, Sebi said.

Further, the amount of commission payable to a share transfer agent or a depository participant will be determined on the basis of applications which have been considered eligible for the purpose of allotment, said Sebi in a circular.

The issuers and their merchant bankers are required to disclose the details of commission and processing fees payable to each intermediary and the timelines for payment in the offer document, Sebi ordered.

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This article was first published on Livemint.com

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.