The Securities and Exchange Board of India (Sebi) on Tuesday said it is working to bring down the time taken for listing of companies on stock exchanges to four days from six now.
Sebi chairman UK Sinha said he has directed his team to start work to reduce the listing-gap to meet global standards. “We have been able to bring down the issue timing from T+12 to T+6 (T denotes the closing date of an IPO, while the number represents business days in listing equity shares on the bourse) days and I would like to say that all of us have to start working now about how to further reduce the issue timing. Can we bring it down to say T+4 days for example and reach the best global standards…..I have already asked my team to start working in that direction,” Sinha said at FICCI’s capital market conference in Mumbai.
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Sinha said that retail investor participation in the primary markets has picked up significantly. “After a gap of several years we are today in a position to say that this financial year is going to be one of the best year so far as the financial markets are concerned. We have substantial amount of money being raised in the first half year…,” Sinha said.
The Sebi chief however, wanted companies and investment bankers to exercise caution on disclosures and IPO pricing. “Three years ago, more than two third of the issues were trading continuously below the issue price and retail investors had left the primary markets. But rigorous enforcement of disclosures, among others, have helped bring in a situation where more than two third of the issues now are trading above the issue price,” said Sinha.
Apart from this Sinha said Sebi has suggested to the government to appoint at least one woman director on the regulator’s board in line with its own directions for listed companies’ gender diversity on high-table under corporate governance rules. Sinha said the regulator in its last meeting has ‘voluntarily’ decided that its non-executive members can meet separately and evaluate the performance of Sebi.
Sinha also said Sebi will soon bring out detailed guidelines on algorithm (algo) or high-frequency trades. “World over, the regulators are struggling to find out solution to this issue (algo) to ensure market integrity and that there is fairness,” said Sinha. A final view on the issue will be taken after extensive consultation with all stakeholders.
The market watchdog is also planning to expedite delisting of companies that have been suspended by the national stock exchanges for a long time.