To expedite the trading of securities by investors, the Securities and Exchange Board of India (SEBI) has stipulated a three working day (T+3) timeline for listing of debt securities issued on a private placement basis as against the previous requirement of four working days (T+4). T-day in stock market parlance stands for transaction day or closure date.
To provide clarity and ensure standardisation of this process, the market regulator has laid out the steps involved in the pre-listing and post-listing of securities under the electronic book provider (EBP) platform, and otherwise. A circular issued by the SEBI stated that the new guidelines would come into effect from 1 January 2023.
If issuers plan to tender non-convertible or municipal debt securities for trading on the EBP platform, they have to seek an in-principle approval from the stock exchanges prior to the date of providing the placement memorandum and term sheet to the EBP.