New T+3 IPO Rule

T+3 IPO refers to the new listing time for initial public offerings (IPOs) in India.

Under the new rules, IPOs will have to mandatorily list after 3 days of the issue closing date. This is a reduction from the previous requirement of 6 days.

The new rules were introduced by the Securities and Exchange Board of India (SEBI) in June 2023.

The aim of the change is to benefit both investors and issuers. Investors will have faster access to the shares, while issuers will have quicker access to the capital raised.

The new rules also specify that the allotment of shares in an IPO must be finalized before 6 pm on the T+1 day (the first working day after the issue closing date).

This is to ensure that investors know whether or not they have been allotted shares before the market opens on the T+2 day.

If an IPO is not listed on the T+3 day, the issuer will have to pay a penalty of Rs. 5 lakh per day. This penalty will be paid to the investors who have been allotted shares in the IPO.

Here is a table summarizing the key T+3 IPO details:

Key detailT+3 IPOPrevious rules (T+6 IPO)
Number of days for listing36
Deadline for finalizing allotmentT+1 dayT+2 day
Penalty for late listingRs. 5 lakh per dayNil

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