Lok Sabha Question No. 3156 (UNSTARRED), answered on 2018-01-05
Subject: Launching of IPOs
Ministry: FINANCE
Asked by: BHAGWANT MANN, SADHU SINGH

## GOVERNMENT OF NNDIA MINISTRY OF FNNANCE DEPARTMENT OF ECONOMC AFFARRS

## LOK SABHA

## UNSTARRED QUESTION NO. 3156 TO BE ANSWERED ON FRIDAY, STH JANUARY, 2018/ PAUSHA 15,1939 (SAKA)

## LAUNCHING OF IPOS

## QUESTION

## 3156. SHRI BHAGWANT MANN PROF. SADHU SINGH

Will the Minister of Finance be pleased to state:

- whether the Securities and exchange Board of India (SEBI) proposes to facilitate and expedite the complete process of launching of TPOs;
- if s0, the details thereof and the steps taken in this direction;
- (c) the manner in which the process will affect the primary market and make it more effective;
- (d) whether the SEBI also proposes to reduce the listing time of any company from six days to four days; and
- (e) if the details thereof and the manner in which it will affect the shareholders? SO,

## ANSWER

## MINISTER OF STATE IN THE MINSTRY OF FINANCE (SHRI PON. RADHAKRISHNAN)

- (2) & (b): Periodic reviews of the extant regulatory framework and various issue related processes are undertaken by the securities market regulator; Securities and Exchange Board of India (SEBI), with an aim to improve the Several   reforms have been undertaken by SEBI during the past few years to facilitate and expedite the complete process of launching IPOs like, enabling Registrar and Transfer Agents (RTAs) and Depository Participants (DPs) to accept application forms and make bids on the stock exchange platform, facilitation of more issuers to raise capital through the 'Fast Track' Route in respect of further public offers; inclusion of RBI registered systemically important NBFCs in the category of qualified institutional buyers etc; The process of issuance of observations on draft offer documents filed by merchant bankers for raising funds by the companies has been streamlined and the total time taken in the entire process has been reduced considerably. Average time taken by SEBI in processing draft offer documents (POs and Rights Issues) has reduced from 78 days in 2016-17 to 61 days in 2017-18 (April to December 2017).
2. (c): These measures have the potential, over a period of time; to lead to fair; transparent and orderly functioning of the securities market which would also ensure protection of the interest of the investors These measures could also increase the efficiency of fund raising and reduce the cost of investment for investors
3. (d): With effect from January 01, 2016, Application Supported by Block Amount (ASBA) mechanism was made mandatory payment mechanism in public issue for retail  investors and the post issue timeline for listing was reduced from 12 post closure of issue to 6 At present; SEBI is undertaking discussions with National Payments   Corporation  of India  (NPCI) and other   intermediaries  associated with PO process; to assess the feasibility of developing an alternate payment mechanism, which building upon the ASBA mechanism; could enhance the process efficiency in payment system and may curtail the post issue timeline for from existing six days days: listing days:
4. (e): An efficient payment mechanism has the potential to reduce the time and cost associated with public issue process and reduce the market risk for shareholders by allowing faster unblocking of capital.

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