Nithin Kamath hails last week’s record IPO listing, saying: “Over the last 20 years, market regulations have improved phenomenally.”

Investors had shown keen interest in the IPOs listed this week. The market was buzzing with five IPOs, including Tata Technology from Tata Group. The smooth listing of all IPOs received applause from several industry leaders.

On the stock exchange, investors submitted bids totaling ₹2.59 lakh crore in the recently completed motherboard IPOs. Besides Tata Tech, four other mainboard IPOs also listed this week, including Gandhar Oil Refineries Ltd., Fedbank Financial Services Ltd., Flair Writing Industries Ltd and Indian Renewable Energy Development Agency (IREDA).

Nithin Kamath, founder of Zerodha, lauded the smooth listing of all issues on the bourse this week and said that market regulation has improved phenomenally in the last two decades.

“After a long time, we are seeing massive activity in the IPO market ₹2.6 million cr is blocked in bank accounts for IPOs worth ₹7.6k cr. If this was 2003, it would take 16 working days (or ~1 month) and all the money would have gone to the investment bankers and paid investors (a waiver of interest) at least 0.5% (assuming 6% pa) or cost ₹1300 crores,” Kamath wrote on X, formerly Twitter.

He also pointed to the shortening of the listing timeframe to T+3, which was T+16 years ago. Mentioning the advantage of the T+3 timeline, Kamath said, “T+16 became T+12, T+6 and from September 2023 it is T+3 (~1 week). The money does not leave the bank account until it is allocated. While institutional investors may miss out on interest income if the money is locked in checking accounts that don’t earn interest for those three days, retail investors continue to earn interest from their savings accounts during the IPO process.

The T+3 timeline is the period for settling stock transactions in the financial markets. From September, SEBI mandates that all IPO issues must be listed on stock exchanges within three working days of the completion of the IPO.

He also praises the phenomenal improvement in capital market regulation over the last 20 years. especially in the last five years.

“In almost every respect, capital market regulations in India have improved phenomenally over the last 20 years, particularly over the last five years,” he added.

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