SEBI Cuts Timeline to T+3 from T+6 for Listing of Debt Securities, NCRPS
Moneylife Digital Team 26 September 2024
Market regulator Securities and Exchange Board of India (SEBI) has decided to reduce the timeline for listing of debt securities and non-convertible redeemable preference shares (NCRPS) to trading (T)+3 working days from existing T+6 working days as an option to issuers for one year and on a permanent basis afterwards.
 
In a circular, SEBI says, "To facilitate faster access to funds for issuers and investors to have early credit and liquidity of their investment, and with a view to align the listing timeline in case of public issue of debt securities and NCRPS with that of non convertible securities issued on private placement basis and specified securities, it has been decided to reduce the listing timeline in case of public issue of debt securities and NCRPS to T+3 working days from existing timeline of T+6 working days."
 
Further, SEBI says to ensure ease of compliance for issuers, the listing timeline of T+3 working days is introduced as an option to issuers for one year and on a permanent basis thereafter such that all listings occur on a T+3 basis.
 
"Accordingly, during the period of voluntary applicability of the listing timeline of T+3 working days, the provisions of regulation 37 (2) of NCS Regulations will become applicable only after
T+6 working day, even in cases where issuer has chosen T+3 as the listing timeline but fails to meet the same," it added. 
 
The provisions of the SEBI circular will be applicable on voluntary basis to public issues of debt securities and NCPRS opening on or after 1 November 2024 and mandatory on or after 1 November 2024.
 
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