I understand that SEBI is the Securities Exchange Board of India.
What are the new rules of SEBI in 2023?
Last year, SEBI had announced a new change in the timeline related to IPO.
Accordingly, SEBI says that new investment dealers and equity dealers must follow certain basic rules before participating in public equity issues. These are as follows,
According to this, the shares must be listed in the market within three days after the issue.
When companies enter the market and issue public shares, they must list the shares on the market within six days.
From September, the rule to list shares within three days was introduced on a voluntary basis. However, this rule has now been made mandatory for all companies
Post-issue, quick listing of shares is considered to be beneficial to both companies and investors. For companies, they can get their funds quickly. Investors can also get their share certificates quickly.
Similarly, refunds to investors who are not allotted shares in the issue will also be expedited.
Before new investment traders and stock traders can participate in stock issues, they must register on the website of the stock trading company. This is an important step to be taken before selling shares in a public limited company.
New investment traders and stock traders should read and understand all the information related to the public issue available on the website of the public company before participating in public issues. It will help them to know the status, achievements, issues, rules and proper investment decisions of public equity issues.
Before new investment traders and stock traders can participate in public share issues, they have to follow SEBI and Public Stock Trading Corporation rules. This will ensure them fair, fair and safe trading in public share issues.
These changes are seen as positive for Indian stock markets. These changes are expected to help increase new equity issuances and provide more opportunities for investors.