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SEBI proposes using UPI to reduce public issue timeline

The Securities and Exchange Board of India (SEBI) has proposed allowing retail investors to use the unified payments interface (UPI) while bidding for shares in an initial public offer (IPO) to reduce the public issue timeline from the current T+6 to T+3. In a discussion paper released on Wednesday, the capital market regulator said that while ASBA — application supported by blocked amount — helped in reducing the timeline two years back, UPI could help in further bringing down the overall IPO timeline. T+3 refers to a system wherein the equity shares would be listed on the bourses on the third day from the day the IPO closes for subscription. SEBI had reduced the IPO timeline from T+12 to T+6 in January 2016 by making ASBA mandatory for all investors.

Read More at The Hindu News date : 25 Jul 2018, Wednesday

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