SEBI notifies Reduction in timeline for listing of debt securities and Non-convertible Redeemable Preference Shares to T+3 working days from existing T+6 working Days [Read Circular]
Currently, issuers have six working days to complete the listing process after the issue closure
SEBI – SEBI debt securities – SEBI NCRPS listing – SEBI regulations on debt securities – SEBI new rules – taxscan
SEBI – SEBI debt securities – SEBI NCRPS listing – SEBI regulations on debt securities – SEBI new rules – taxscan
In a significant move aimed at improving market efficiency, the Securities and Exchange Board of India ( SEBI ) has reduced the timeline for listing debt securities and Non-convertible Redeemable Preference Shares ( NCRPS ) from T+6 working days to T+3 working days.
The revised timeline will become effective on a voluntary basis from November 1, 2024, and will be mandatory for all issuers starting November 1, 2025.
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This change, announced in a SEBI circular dated September 26, 2024, is designed to streamline the public issuance process for debt securities and NCRPS, providing quicker access to funds for issuers and faster liquidity for investors.
Currently, issuers have six working days to complete the listing process after the issue closure. With the new T+3 timeline, issuers will be required to complete this process within three working days, reducing the waiting period by half.
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During the voluntary one-year period, issuers can choose to follow either the T+3 or the current T+6 listing schedule. However, SEBI has clarified that even if issuers opt for the T+3 timeline, penalties related to delays in refunds or unblocking of funds will only apply after T+6 working days. This provision is intended to give issuers some flexibility while transitioning to the new system. Once the T+3 timeline becomes mandatory in 2025, all issuers will be required to adhere strictly to the revised timeline.
SEBI has emphasised that the new timeline aligns the listing process for debt securities and NCRPS issued through public offerings with the timeline for non-convertible securities issued via private placement.
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Stock exchanges will be responsible for ensuring that issuers comply with the new timelines, and SEBI will closely monitor the implementation of the new system to protect investor interests and promote the smooth functioning of the securities market.
With this change, market participants can expect quicker fund allocation and faster commencement of trading, which should result in greater liquidity and improved market dynamics overall.
To Read the full text of the Circular CLICK HERE
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