Sebi cuts listing time for debt securities

Markets regulator Sebi on Thursday drastically cut the timeline for listing of debt securities to six days from 12 at present, in order to make the existing process of issuance of such securities simpler and cost effective.

Besides, the Securities and Exchange Board of India (Sebi) has made ASBA (Application Supported by Blocked Amount) mandatory for all investors for making payment, while applying in a public issue of debt securities.

The mandatory ASBA facility would reduce the time taken for collecting banks to commence clearing of payment instruments, forwarding application forms along with bank schedules to registrar and undertaking of technical rejection test.

The new rule will be applicable to all public issues of debt securities from October 1, 2018, Sebi said in a circular.

“In order to make the existing process of issuance of debt securities, NCRPS (non-convertible redeemable preference shares) and SDI (securitised debt instruments) easier, simpler and cost effective for both issuers and investors...it has been decided to reduce the time taken for listing after the closure of issue to six working days as against the present requirement of 12 working days,” it noted.

An investor, intending to subscribe to a public issue, will have to submit a completed bid-cum application form to self-certified syndicate banks (SCSBs), with whom the bank account to be blocked is maintained.

Apart from self-certified syndicate banks, investors will have the option to submit the application with market intermediaries like registered stock broker; depository participant and registrar to an issue and share transfer agent.

The SCSBs or the market intermediaries will, at the time of receipt of an application, give an acknowledgement to the investor, specifying the application number as a proof of having accepted the application form.

After accepting the form, the SCSB will have to capture and upload details in the electronic bidding system as specified by the stock exchange and may begin blocking of funds available in the bank account specified in the form.