In a bid to make primary markets more efficient, the Securities and Exchange Board of India on Saturday said listing time gap would be reduced further from 6 days after the IPO currently, while listing will be allowed for security receipts issued by asset reconstruction company.
In a number of reform measures planned for the next fiscal, Sebi also announced setting-up a 'cyber security Lab' for the securities market and a facility for online registration for market intermediaries.
The plan for action for 2017-18, approved by Sebi's board at a meeting in New Delhi, also includes facilitating the objective of "ease of doing business", introduction of common application form for registration, opening of bank and demat accounts and issue of PAN for Foreign Portfolio Investors.
Other tasks include strengthening research initiatives in Sebi with special focus on research on commodity market, inter-linkages of various markets such as equity, forex, and commodity.
Besides, Sebi would work towards increasing its efforts in the areas of investor education and ensure that it covers all the districts in the country. It would enhance engagement in the social and digital media for investor awareness programmes.
The Sebi board has decided to reduce "the listing time gap by bringing down the issue timing from the existing requirement of T+6".
It takes six days after the close of bidding in the initial public offer (IPO) for a company to list on stock exchanges, thus keeping the investors funds locked in for a longer period of time.
To enhance capital flows into the securitisation industry and check banks' non-performing assets (NPAs), Sebi will allow listing and trading of security receipts issued by asset reconstruction companies (ARCs)on stock exchanges.
Further, to improve ease of doing business, Sebi will set-up paperless online mechanism for registration as brokerage firms, mutual funds, portfolio managers and other market intermediaries.
The new system would help make it easier for the existing and new market intermediaries to complete their registration and other regulatory filings with Sebi much faster and in a cost-effective way.