CIRCULAR
SEBI/HO/CFD/TPD1/CIR/P/2023/140 August 09, 2023
To
Recognized Stock Exchanges
Depositories
Registered Stock Brokers
Registered Merchant Bankers
Registered Registrars to an Issue and Share Transfer Agents
Registered Depository Participants
Registered Bankers to an Issue
Self Certified Syndicate Banks (SCSBs)
National Payments Corporation of India (NPCI)
Dear Sir / Madam,
Sub: Reduction of timeline for listing of shares in Public Issue from existing T+6
days to T+3 days
1. Consequent to extensive consultation with the market participants and
considering the public comments received pursuant to consultation paper on the
aforesaid subject matter, it has been decided to reduce the time taken for listing
of specified securities after the closure of public issue to 3 working days (T+3
days) as against the present requirement of 6 working days (T+6 days); ‘T’ being
issue closing date.
2. Accordingly, the revised timelines for listing of specified securities and various
activities involved in the public issue process are specified in Annexure to this
circular.
3. The T+3 timeline for listing shall be appropriately disclosed in the Offer
Documents of public issues.
4. The timelines for submission of application, allotment of securities, unblocking of
application monies and listing shall prominently be made a part of pre-issue,
issue opening and issue closing advertisements issued by the Issuer for public
issues in terms of the SEBI (Issue of Capital and Disclosure Requirements)
Regulations, 2018 (“ICDR Regulations”).
General Instructions:
5. For Direct Bank ASBA and Syndicate ASBA applications, prior to blocking of
ASBA application monies in the bank account of the applicant, the SCSBs shall
ensure the following:
(i) The PAN mentioned in the application matches with the PAN linked to
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the bank account of the applicant maintained with the bank.
A confirmation on the above shall be submitted by SCSBs to the
Registrar to an Issue along with the Final Certificate.
(ii) The PAN linked to the bank account of the applicant shall be part of the
bidding data on the Stock Exchange platform.
6. The Registrar to an Issue shall undertake third-party verification of the
applications by matching the PAN available in the demat account with the PAN
available in the bank account of the applicant. In instances of mismatch, such
applications shall continue to be considered as invalid applications for finalising
the basis of allotment.
7. Lock-in of pre-issue shares shall be made effective in compliance with ICDR
Regulations. Further, the operationalization of lock-in shall be in line with the
Standard Operating Procedure (SOP) of Depositories issued vide
circular/communique dated August 08, 2023.
8. In partial modification to circulars dated March 16, 2021 and April 20, 2022, the
compensation to investors for delay in unblocking of ASBA application monies (if
any) shall be computed from T+3 day.
Applicability of this circular
9. Notwithstanding anything contained in Schedule VI of the ICDR Regulations, the
provisions of this circular shall be applicable:
- On voluntary basis for public issues opening on or after September 1,
2023 and
- Mandatory for public issues opening on or after December 1, 2023.
10. The timelines prescribed for public issues as mentioned in SEBI circulars dated
November 1, 2018, June 28, 2019, November 8, 2019, March 30, 2020, March
16, 2021, June 2, 2021, and April 20, 2022 shall stand modified to the extent
stated in this Circular.
11. This Circular is being issued in exercise of the powers conferred under section 11
and section 11A of the Securities and Exchange Board of India Act, 1992.
12. This circular is available on SEBI website at www.sebi.gov.in under the category:
‘Legal → Circulars’.
Yours faithfully,
E Balasubramanian
General Manager
+91-22-26449195
ebala@sebi.gov.in
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ANNEXURE
Indicative timeline of activities for listing of shares through Public Issues on T+3 day
Sequence of Activities Listing within T+3 days (T is Issue Closing Date)
Application Submission Electronic Applications (Online ASBA through 3-in-1
by Investors accounts) – Upto 5 pm on T day.
Electronic Applications (Bank ASBA through Online
channels like Internet Banking, Mobile Banking and
Syndicate UPI ASBA etc) – Upto 4 pm on T day.
Electronic Applications (Syndicate Non-Retail, Non-
Individual Applications) – Upto 3 pm on T day.
Physical Applications (Bank ASBA) – Upto 1 pm on T
day.
Physical Applications (Syndicate Non-Retail, Non-
Individual Applications of QIBs and NIIs) – Upto 12 pm
on T day and Syndicate members shall transfer such
applications to banks before 1 pm on T day.
Bid Modification From Issue opening date up to 5 pm on T day
Validation of bid details From Issue opening date up to 5 pm on T day
with depositories
Reconciliation of UPI On Daily basis
mandate transactions
(Based on the guidelines
issued by NPCI from time to
time):
Among Stock Exchanges –
Sponsor Banks – NPCI and
NPCI – PSPs/TPAPs** –
Issuer Banks;
Reporting formats of bid Merchant Bankers to submit to SEBI, as and when
information, UPI analysis sought.
report and compliance
timelines.
UPI Mandate acceptance T day – 5 pm
time
Issue Closure T day – 4 pm for QIB and NII categories
T day – 5 pm for Retail and other reserved categories
Third party check on UPI On daily basis and to be completed before 9:30 AM on
applications T+1 day.
Third party check on Non- On daily basis and to be completed before 1 pm on T+1
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UPI applications. day.
Submission of final
certificates:
-For UPI from Sponsor UPI ASBA – Before 09:30 pm on T day.
Bank
- For Bank ASBA, from all All SCSBs for Direct ASBA – Before 07:30 pm on T day
SCSBs
- For syndicate ASBA Syndicate ASBA - Before 07:30 pm on T day
Finalization of rejections Before 6 pm on T+1 day.
and completion of basis
Approval of basis by Before 9 pm on T+1 day.
Stock Exchange
Issuance of fund transfer
instructions in separate
files for debit and
unblock.
For Bank ASBA and
Online ASBA – To all Initiation not later than 09:30 am on T+2 day;
SCSBs
Completion before 2 pm on T+2 day for fund transfer;
For UPI ASBA – To
Sponsor Bank Completion before 4 pm on T+2 day for unblocking.
Corporate action Initiation before 2 pm on T+2 day
execution for credit of
shares Completion before 6 pm on T+2 day
Filing of listing Before 7:30 pm on T+2 day
application with Stock
Exchanges and issuance
of trading notice
Publish allotment On website of Issuer, Merchant Banker and RTI - before 9
advertisement pm on T+2 day.
In newspapers – On T+3 day but not later than T+4 day
Trading starts T+3 day
**PSPs/TPAPs = Payment Service Providers/Third Party Application Providers.
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