SEBI (Securities and Exchange Board of India) has shortened the
time it takes for public debt securities (like bonds) to be listed on the stock
exchange after they are issued. The timeline is now reduced from 6 working days
to 3 working days, which will allow companies to get the money faster.
a)
What Changed?
· The time to list public debt securities and NCRPS (Non-Convertible
Redeemable Preference Shares) is reduced from 6 days to 3 days.
· This change will be optional starting November 1, 2024, and
mandatory from November 1, 2025.
b)
Why Was This Done?
· To speed up the process so companies can access funds faster.
· It brings the timeline for these listings in line with other
private placements of debt securities.
c)
For Investors:
· Retail investors applying for up to ₹5 lakh can use UPI to block funds while subscribing. (I have
explained this in my previous post, attached is the link)-https://abhijitkarkera.blogspot.com/2024/09/new-upi-rules-for-debt-securities.html
In summary, SEBI is trying to make the process faster and more
efficient for companies to raise money through debt securities.
(Note:- T means Transaction Day.)
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