SEBI revises IPO listing time, tightens disclosure norms for FPIs, approves other proposals

The Securities and Exchange Board of India (SEBI) has approved a proposal to reduce the time period for listing shares for initial public offerings (IPOs) from the date of issue closure (T Day) to three days instead of the current six days. The revised schedule of T+3 days will be implemented in two stages. The new listing timeframe will be optional for all public offerings commencing on or after September 1, 2023, but will be required for all offerings commencing on or after December 1, 2023.
In addition, the SEBI board has approved the listing of non-convertible debt (NCDs) securities and the voluntary delisting of NCDs. It has allowed nomination rights to unitholders holding 10 per cent or more of the total outstanding units of infrastructure investment trusts (InvITs) and real estate investment trust (REITs) on the board of directors. Lastly, the board implemented more stringent disclosure requirements for foreign portfolio investors (FPIs) in order to prevent any potential circumvention of minimum public shareholding rules or misuse of the FPI investment route. It has also mandated more granular disclosures regarding ownership, economic interest, and control of any company.