- It has been reduced by SEBI from T+4 days to T+3 days, where T refers to the issue closure date.
- The reduction of the timeline has been done to boost the availability of securities for trading by investors and new guidelines will come into effect from 01st January 2023.
- SEBI specified the steps involved in pre and post-listing, along with various deadlines, both via the Electronic Book Provider (EBP) platform and otherwise.
- As per the EBP mechanism, the issuer who intends to list municipal-debt securities and non-convertible securities must obtain in-principle approval from the stock exchange before the date on which the placement memorandum and term sheet are presented to the EBP.
- For the bidding to be done on T-day, the announcement of start and close times of the EBP platform must be announced by the issuer on or before T-1.
- Further, the issuer has to obtain the International Securities Identification Number (ISIN) from a depository before applying to another depository for admission of debt issuance by T+1.
- Following that, a credit confirmation letter will be sent to the issuer by the depositories on or before T+1, and T+2, and the issuer must apply listing of debt securities by T+3.
- SEBI was established in 1992 with its headquarters in Mumbai. The current Chairperson of the body is Madhabi Puri Buch.
Question:
Q.1 Which of the following reduced the timeline for listing debt securities issued through private placement?a. SEBI
b. RBI
c. NABARD
d. SIDBI
