SEBI Update – Reduction in the timeline for listing of debt securities and Nonconvertible Redeemable Preference Shares to T+3 working days from existing T + 6 working days (as an option to issuers for a period of one year and on a permanent basis thereafter such that all listings occur on a T+3 basis)

As per the Master Circular dated May 22, 2024, the listing of debt securities and NCRPS issued through public issues must be completed within T+6 working days.
Regulation 37(2) of SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021, mandates issuers to refund application money if they fail to list within the specified timeline. If the refund is delayed, the issuer is liable to pay interest at 15% per annum.
SEBI has decided to reduce the listing timeline from T+6 working days to T+3 working days to facilitate faster access to funds for issuers and to provide investors with quicker liquidity.
The T+3 timeline will be introduced as an option for issuers starting November 1, 2024, for a period of one year.
From November 1, 2025, the T+3 timeline will become mandatory for all public issues of debt securities and NCRPS.
During the voluntary period (from November 1, 2024, to October 31, 2025), if an issuer opts for T+3 but fails to meet the timeline, Regulation 37(2) will only apply after T+6 working days.
The T+3 timeline must be clearly disclosed in the Offer Documents of the public issues.

Link – https://www.sebi.gov.in/legal/circulars/sep-2024/reduction-in-the-timeline-for-listing-of-debt-securities-and-non-convertible-redeemable-preference-shares-to-t-3-working-days-from-existing-t-6-working-days-as-an-option-to-issuers-for-a-period-of-_87014.html