SEBI says reduced IPO listing time within a year
SEBI on Monday exuded confidence that decision on reducing listing time for companies to seven days after close of an IPO could be made in a year`s time, even as a number of entities will have to be involved in the process.
New Delhi: Market regulator SEBI on Monday exuded confidence that decision on reducing listing time for companies to seven days after close of an IPO could be made in a year`s time, even as a number of entities will have to be involved in the process.
The decision to reduce IPO processing time from the present 21 days would be good for the companies as well, SEBI Chairman C B Bhave told news channel.
"There are many people involved in it. The stock exchanges, merchant bankers, bankers to the issues, registrar. All these people should be brought to one table and then how to reduce the timeline, we are thinking on it. And we think that within a year to achieve this target is possible for the markets," Bhave said.
He said the proposed move will also be beneficial for the companies as the mopped up amount cannot be used unless the company is listed.
"It is a good step even from the point of view of companies. I think they would welcome the measure," Bhave said.
He, however, said infrastructure should be upgraded to implement the decision of reducing IPO processing time.
Bhave said settlement process in the secondary market has been reduced over time, and now primary markets should be reformed.
"In the secondary market, there was automation in stock market, then depository system took place. T+5, T+3, T+2..we completed these journeys..In this manner, there is a need to bring reform here (primary markets)," Bhave said.
To a question, Bhave said increasing the maximum limit that a retail investor can apply from the current Rs one lakh may not be that important for increasing his participation.
"If we think that only by increasing the threshold limit of Rs one lakh for retail investors would increase the participation of retail investors, it would be a statistical jugglery," he said.
He said rather retail investors should be given a message
that the stock market is a price risk, but all other risks are
On whether compulsory grading of IPO would continue,
Bhave said there is a discussion in the Primary Market
Advisory Committee on how much investors are benefited from
the rating system.
"If there is need for any changes in it, then we would
consider it," he said.