Sebi proposes to reduce IPO process time to 6-7 days

NEW DELHI: Market regulator Sebi is proposing to shrink the time taken for initial public offer (IPO) process to six-seven days from about 12 days now, as part of its plan to make capital raising easier for companies.

“The Sebi board at its last meeting [November 19, 2014] approved e-IPO [electronic–initial public offering] discussion… Discussion paper would be made public soon. Our aim is to bring down T+12 to T+5 or T+6 for listing,” Sebi chairman UK Sinha told reporters after inaugurating BSE’s new investor service centre in the capital on Saturday.

E-IPO will take a leaf out from the present secondary market mechanism for issuance of shares. Secondary market issuance has been simplified for the top 200 companies.