With a view to reduce the time taken in the listing of shares issued in the public offers, SEBI, in its board meeting on September 18, 2018, has approved payment through Unified Payment Interface (UPI) for applications submitted by retail investors through intermediaries. As per the press release issued by SEBI, disallowing physical movement of application forms from intermediaries will fasten the process of issuance and listing of shares.
This decision will lower the risks involved in blocking investors’ funds for a prolonged period, while waiting for the listing of shares. This is also a step forward towards reducing the time taken for listing from the current T+6 days to the proposed T+3 days. The early listing and trading of shares would mutually benefit both the investors and issuers by providing faster access to the capital raised and generating liquidity.
