Allotment Period Cut To 21 Days

The Securities and Exchange Board of India (Sebi) has decided to reduce the allotment period for public issues to 21 days from the existing 30 days. This will be applicable for all offerings up to Rs 50 crore. Issues above Rs 50 crore will continue to have an allotment period of 30 days.

The capital market regulator will soon send a notification to this effect. This decision was taken at a meeting called by Sebi with the registrars and leading bankers on Friday last. Sebi had earlier insisted on reducing the time frame to 15 days to enhance the confidence of investors. However, various participants expressed the practical difficulties involved in bringing down the allotment time to 15 days.

 

Sebi has decided to set up a panel comprising its officials, representatives from Registrars Association of India and members of IBA to resolve the issue and also to find out ways to further bring down the allotment period to 15 days. Among those who participated in the meeting held on Friday at Sebi included top brass of PNB, BoI, SBI, MCS, Tata Share Registry, Karvy Consultants, TCS and others.