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.
This article was first published on Livemint.com