Instant money on share sale soon: Sebi
Sebi may bring in a rule for instant settlement of trades on the stocks exchanges, will money being credited to investors account immediately
Now investors will not have to wait for the credit of shares in demat accounts for buying shares or for the transaction of fund credits in accounts for selling shares. SEBI is working towards implementing Quick Transaction Settlement in the stock market.
Speaking to reporters on Monday, Sebi chairperson Madhabi Puri Buch said that Instant Settlement of Stock Market Transactions in the stock market is not far away. SEBI is talking to the parties to improve the timeline for transaction settlement. She said that investors are benefiting a lot from a system like ASBA for trading. Right now about Rs 2,300 crore are being returned to the investors in the form of interest. With the improvement in this ecosystem, investors will save even more.
T+1 settlement
SEBI’s chairperson said that India is also among the first countries to adopt T+1 settlement in the world. She said that T+1 settlement has been implemented for all the shares. That is, if any investor buys shares, then the very next day the shares are transferred to his demat account. Not only this, if an investor sells shares, the money is credited to his bank account the very next day. Due to this, the margin of Rs 10,000 crore is being returned to the system immediately. Investors are getting huge benefit from this.
Fixed price delisting
Sebi is also exploring options to allow companies to delist at a fixed price instead of the present reverse book-building process. Sebi will issue a discussion paper on this issue by Decemeber, she said. She said there have been case of misue of the reverse book-building process. At present there is threshold of 90% for delisting to succeed. She said there are buiness models which, in anticipation of delisting, accumulate over 10% of shares to get higher buyback price.
FM to launch debt back stock fund
Madhabi Puri said that accepting the demand of New Tech companies, SEBI has given permission to file confidential ‘draft document’ with SEBI for approval of IPO. He said that now companies can file draft documents with SEBI and when they have confidence in both the market and the company, then they can issue IPOs. SEBI Chief informed that on July 29, 2023, Finance Minister Nirmala Sitharaman will launch debt back stock fund of Rs 33,000 crore.