The "T+3" Listing Rule: How it Changed the IPO Game

If you’ve applied for an IPO this week, you’ve likely noticed that the listing happens almost immediately after the subscription closes. This is due to SEBI’s mandatory "T+3" listing rule, which was fully implemented in late 2024 and has revolutionized the Indian primary market in 2025. "T+3" means that a company must list its shares on the exchange within three business days of the IPO closing date.\n\nBefore this rule, the timeline was "T+6," which meant your funds were blocked for over a week. The current system reduces the "opportunity cost" for retail investors. If you don’t get an allotment, your money is back in your account by the second day, allowing you to apply for the next IPO immediately. This has led to a massive increase in "Churn" and overall subscription volumes in the SME segment.\n\n\n\nFor the companies, T+3 reduces the market risk. Since the time between the price discovery and the actual listing is shortened, there is less chance of a global market event crashing the "listing pop." It also forces registrars and banks to automate their allotment and refund processes, leading to a much more efficient and tech-driven financial system.\n\nHowever, T+3 also means that investors have very little time to "re-think" their decision. The window for withdrawing an application is now almost non-existent. Furthermore, the Grey Market is now more volatile as the "unofficial trading" window has shrunk, forcing speculators to take faster and riskier positions.\n\nIn conclusion, the T+3 rule is a hallmark of a mature capital market. It aligns India with global standards in the US and Europe. As we prepare for the mega-IPOs of 2026, the speed of the market will be its defining feature. Retail investors must ensure their UPI and demat settings are fully updated to keep up with this high-speed listing environment.