Your IPO investment will now be listed in 3 days

Markets regulator Sebi has approved a shorter IPO-listing timeline to three days. At its board meeting on Wednesday, the regulators also tightened the disclosure requirements for certain classes of foreign portfolio investors and investor grievance handling mechanism.

The meeting also approved special rights to unitholders of REITs and InvITs to nominate representatives on the boards. Among other decisions,  approval has been given for amendments to norms on non-convertible securities and for steps to deepen the bond market.

In a boost to common investors, the shares of company will be listed three days after the IPO closes from the six days at present. This schedule will be voluntary till for issues opening between September 1 and Novemebr 30. From Decemebr 1, it will be mandatory.

Speaking after the meeting, Sebi Chairperson Madhabi Puri Buch said the shorter listing time is a “global first and it be glitchless as all market participants have tested its applicability”.

One of the other big decisions taken was on transparency of FPI investments. Now certain classes of FPIs will have to furnish granular details about ownership and economic interests. The new norms will be applicable for FPIs that concentrate holdings in a single corporate group.

The move is aimed at preventing possible circumvention of public shareholding requirements and potential misuse of the FPI route to guard against opportunistic takeover of Indian companies.

The meeting also approved changes to rules to provide nomination rights to unitholders holding 10 per cent or more of the total outstanding units of the InvIT/REIT, either individually or collectively, on the board of directors of the investment manager/ manager.

Over the years, retail investor interest in InvITs and REITs has been increasing. The current regulatory framework for InvITs or REITs does not explicitly provide for unitholders to have a say in the decisions made by the investment managers of these funds, Sebi said.