Quicker IPO Listing

Firms should list within 7 days of IPO: SEBI

Thursday,19 November 2009

 

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has said companies should list themselves within seven days of their initial public offerings (IPOs) - a move that would lower the risks and costs associated with a longer gestation period currently in place.

"The listing time should come down to seven days," said SEBI Chairman C B Bhave. He said that many things change during the time an IPO closes and the company finally lists on the bourses and therefore the investors get exposed to potential risks for a longer period, reports PTI. The regulator was looking to cut down the interim period between an IPO and the listing to seven days, from around 20 days currently, he added.

A shorter gestation period would unlock money invested in IPOs faster, so that the money can be productively employed. Bhave also sought to lower the costs and risks associated with mutual fund investments so that the investors get benefited. "We need to look at reducing the cost of mutual funds and risk of investors," Bhave noted. Over the past few months, a number of initiatives have been taken by SEBI towards bolstering the IPO and mutual fund segments.