SEBI cuts time between issue closure and listing to 12 days

Source: Moneylife:April 06, 2010 07:39 PM

Market regulator Securities and Exchange Board of India (SEBI) has said that it proposes to reduce the time between public issue closure and listing to 12 days from the existing (up to) 22 days. This will be applicable to public issues opening on or after 1 May 2010, SEBI said in a release.

The market regulator said that the new process would require syndicate members to capture all data relevant for the purposes of finalising the basis of allotment while uploading bid data in the electronic bidding system of the stock exchanges. To ensure that the data so captured is accurate, syndicate members would be permitted an additional day to modify some of the data fields entered by them in the electronic bidding system, it said.
The registrar to the issue is required to validate the bids and finalise the basis of allotment only on the basis of the final electronic bid file provided by the stock exchanges, SEBI said.

The market regulator said that the lead managers and their agents would be responsible for the accuracy of data entry and for resolving investor grievances. Further, the application supported by blocked amount (ASBA) process would also undergo suitable modification to make it consistent with these timelines, SEBI added.