On Sep. 26, IND SEBI reduced the timeline for debt securities listings.
IND SEBI allowed a reduction in the timeline for listing of debt securities and non-convertible redeemable preference shares to T+3 working days, from T+6 days.
It explained that this has been provided as an option to issuers for a period of one year and on a permanent basis thereafter such that all listings occur on a T+3 basis.
Follows IND SEBI Jun. 2023 master circular on listing, disclosure, see #178169.
Reduced Timeline
The change aims to facilitate faster access to funds for issuers and for investors to have early credit and liquidity of their investment via the alignment of listing timelines.
During period of voluntary applicability of the listing timeline of T+3 working days, the provisions of reg 37 (2) of Issue and listing of non-convertible securities regulations, 2021 (NCS regulations) shall become applicable only after T+6 working day.
Even in cases where issuer has chosen T+3 as the listing timeline but fails to meet it.
The T+3 timeline for listing shall be disclosed in the offer documents of public issues.
Compliance Deadlines
Provisions of circular apply on a voluntary basis to public issues of debt securities and non-convertible redeemable preference shares (NCRPS) opening on/post Nov. 1, 2024.
In addition, apply on a mandatory basis for public issues of debt securities and NCRPS opening on/after Nov. 1, 2025; stock exchanges shall monitor compliance with circular.
