Post IPOs, cos must list within 12 days, says Sebi
TIMES NEWS NETWORK Mumbai: Come May and the wait for IPO investors to see the companies get listed will get shorter. On Tuesday, Sebi said that from May 1, all companies going for an IPO should get their shares listed within 12 days after the close of the offering, down from 22 days now. The Sebi decision will reduce the risks associated with investments in IPOs. Often in the past, after the close of an IPO, market conditions changed drastically and at listing, IPO investors saw severe erosion in the value of their investments made just weeks ago. The changed dateline will be ‘‘applicable to public issues opening on or after May 1, 2010,'' a Sebi release said. Given the advancement in technology and improvement in banking processes including cheque clearing mechanisms, the market regulator had been talking about reducing the timeline for completing an IPO. Under the new process, the merchant bankers and syndicate members (brokers who accept IPO forms on behalf of the merchant bankers) will get an additional day to make corrections to the IPO bid data on bourses' electronic bidding system. ‘‘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,'' the Sebi release said. However, the lead managers and their agents would be responsible for the accuracy of data entry and for resolving investor grievances, the regulator said. -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
