MUMBAI India – In a significant move aimed at bolstering India’s capital market, the country’s market regulator has recently put forth a proposal to slash the listing time for shares on stock exchanges following initial public offerings (IPOs) from the current duration to a mere three days.

The Securities and Exchange Board of India (SEBI) published a consultation paper on its official website late last Saturday, highlighting the potential benefits that would arise from reducing the timelines for listing and trading of shares. This proposed change holds immense promise for both issuers and investors, according to SEBI.

By expediting the listing process, issuers will gain swifter access to the capital they have raised, thereby significantly enhancing the ease of doing business. On the other hand, investors will enjoy the advantages of early credit and liquidity for their investments, thereby further facilitating their financial goals.

Recognizing the importance of gathering varied perspectives, SEBI has opened the proposal for public comments until June 3, allowing stakeholders to share their insights and provide valuable input on the potential impact of this transformative change.

The regulator aims to consider diverse viewpoints and ensure a comprehensive evaluation before finalizing any decisions.

This move by SEBI reflects a proactive approach in strengthening India’s capital market infrastructure and aligning it with global best practices. By reducing the listing time, the regulator aims to enhance market efficiency, attract more issuers to the Indian market, and further bolster investor confidence.

As the proposed change enters the consultation phase, market participants, experts, and industry stakeholders are encouraged to contribute their opinions and suggestions. Their collective input will play a crucial role in shaping the future of the Indian capital market and establishing a conducive environment for sustainable growth and investment opportunities.

Image Credit: Reuters.com


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