The Securities and Exchange Board of India on 5th October 2020 has come up with a uniform timeline for listing of securities on the basis of a private placement, which shall come into force from 1st December 2020.
SEBI has been receiving requests from various market participants for clarification on the time period within which securities issued on private placement basis under SEBI ILDS, SEBI NCPRS, SEBI SDI and SEBI ILDM Regulations need to be listed after completion of allotment, therefore after taking feedback from market participants, it has been decided to stipulate the following timelines:
- The day of closure of issue is considered the ‘T’ day.
- The allotment of securities will be completed by ‘T+2’ trading days after receiving funds.
- The listing permission from the stock exchanges should be received by ‘T+4
T day refers to the closure of the issue.
In case of delay in listing of securities issued on a private placement basis beyond the timeline, the issuer will pay penal interest of 1 per cent per annum over the coupon rate for the period of delay to the investor (i.e. from date of allotment to the date of listing).
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