SEBI reduces timelines between issue closure and listing

SEBI vide press release PR No.88/2010 dated April 6, 2010 has proposed to reduce the time between public issue closure and listing to 12 days from existing of up to 22 days. This will be applicable to public issues opening on or after May 1, 2010. This move by SEBI is a part of its continuing endeavor to make the existing public issue process more efficient.

The new process would require syndicate members to capture all data relevant for the purposes of finalizing the basis of allotment while uploading bid data in the electronic bidding system of the stock exchanges. To ensure that the data so captured is accurate, syndicate members would be permitted an additional day to modify some of the data fields entered by them in the electronic bidding system. Registrar to the issue is required to validate the bids and finalize the basis of allotment only on the basis of the final electronic bid file provided by the stock exchanges. The Lead Managers/their agents would be responsible for the accuracy of data entry and for resolving investor grievances.

A copy of the press release is available here.