The Securities and exchange Board of India on Thursday cut the time for listing of debt securities to six days from 12 days at present. This the regulator said will make the existing process of issuance of such securities simpler and cost effective.

Sebi said that Application Supported by Blocked Amount will be mandatory for all the investors for making payment while applying in a public issue of debt securities. This will reduce the time taken for collecting banks to commence clearing of payment instruments, forwarding application forms along with bank schedules to registrar and undertaking of technical rejection test.

“In order to make the existing process of issuance of debt securities, non-convertible redeemable preference shares and securitised debt instruments easier, simpler and cost effective for both issuers and investors…it has been decided to reduce the time taken for listing after the closure of issue to 6 working days,” said Sebi.

According to the Sebi circular, investors, intending to subscribe to a public issue, will have to submit a completed bid-cum application form to self-certified syndicate banks (SCSBs), with whom the bank account to be blocked is maintained. Apart from self-certified syndicate banks, investors will have the option to submit the application with market intermediaries like registered stock broker; depository participant and registrar to an issue and share transfer agent.

The SCSBs or the market intermediaries will at the time of receipt of application, give an acknowledgement to investor, by specifying the application number to the investor, as a proof of having accepted the application form. After accepting the form, SCSB will have to capture and upload details in the e-bidding system as specified by the stock exchange and may begin blocking of funds available in the bank account specified in the form.