SEBI mulls shortening IPO process at PMAC meeting

SEBI chairman C B Bhave has called for shortening the IPO process from issue closing to listing in just five days. The regulator is also said to be in talks with merchant bankers on the issue.

The issue concerning Qualified Institutional Buyers (QIBs) is also said to be on the agenda with the market regulator considering reducing the time limit during which WIBs can apply when an IPO opens for subscription.

Sebi is reportedly considering cutting the time frame for bids from institutional investors to two-three days instead of the present five with the final target of just one day.

The reason it cites for the move is that price discovery could happen within just 2-3 days.

The primary market advisory committee (PMAC) meeting, chaired by Deepak Parekh, is also understood to have discussed the IPO grading process which, according to market grapevine, has not found favour with institutional investors but which, according to rating agencies has proved successful.

The regulator has also eased restrictions on portfolio managers allowing them to accept new clients provided the accounts of the existing customers who failed to cooperate with transparency norms were frozen.