Sebi cuts listing time for debt securities

Markets regulator Sebi recently drastically cut the timeline for listing of debt securities to six days from 12 days 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 the 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 would be applicable for 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 6 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 application, give an acknowledgement to investor, by specifying the application number to the investor, as a proof of having accepted the application form.