Mumbai, Oct 5 (IANS): The Securities and Exchange Board of India (SEBI) on Monday came up with a uniform timeline for listing of securities on a private placements basis.

The standardised timeline will be applicable for listing of non-convertible redeemable preference shares, debt securities, securitised debt instruments and security receipts, and municipal bonds.

The timeline shall come into force with effect from December 1.

In a circular on Monday, the securities market regulator said that it has taken the decision after discussions with and feedback from market participants.

"SEBI has been receiving requests from various market participants for clarification on the time period within which securities issued on private placement basis under SEBI ILDS, SEBI NCPRS, SEBI SDI and SEBI ILDM Regulations need to be listed after completion of allotment," it said.

Post the new norms, the allotment of securities will be completed by 'T+2' trading days after receiving funds. The day of closure of issue is considered the 'T' day.

The listing permission from the stock exchanges should be received by 'T+4' days.

In case of delay in listing of securities issued on private placement basis beyond the timelines specified, the issuer shall pay penal interest of 1 per cent per annum over the coupon rate for the period of delay to the investor.

Further, in case of delay, the issuer will be permitted to utilise the issue proceeds of its subsequent two privately placed issuances of securities only after receiving final listing approval from stock exchanges.

The SEBI also said that depositories shall activate the ISINs of debt securities issued on private placement basis only after the stock exchanges have accorded approval for listing of such securities.

Further, in order to facilitate reissuances of new debt securities in an existing ISIN, depositories are advised to allot such new debt securities under a new temporary ISIN which shall be kept frozen.

Upon receipt of listing approval from exchanges for such new debt securities, the debt securities credited in the new temporary ISIN shall be debited and the same shall be credited in the pre-existing ISIN of the existing debt securities, before they become available for trading.