Nithin Kamath applauds bumper IPO listing last week, says 'In last 20 years, market regulations improved phenomenally'

livemint.com:

₹2.59 lakh crore in the recently concluded mainboard IPOs. Apart from Tata Tech, four other mainboard IPOs were also listed this week, including Gandhar Oil Refineries Ltd., Fedbank Financial Services Ltd., Flair Writing Industries Ltd, and Indian Renewable Energy Development Agency (IREDA). Praising the smooth listing of all the issues this week in the stock market, Zerodha founder Nithin Kamath said that market regulations have improved phenomenally over the past two decades.

“After a long time, we have had massive activity in the IPO market, with ₹2.6lk cr blocked in bank accounts for IPOs worth ₹7.6k cr. If this was 2003, it would take 16 working days (or ~1 month), and the entire money would have moved to investment bankers and cost investors (an interest forego) at least 0.5% (assuming 6% pa) or ₹1300 crores," wrote Kamath on X, formerly Twitter. He also pointed out towards the reduction in IPO listing timeline to T+3, which used to be T+16 years ago.

While mentioning the benefit of T+3 timeline, Kamath said, “T+16 became T+12, T+6, and from Sep 2023 it is T+3 (~1week). Now, the money never leaves the bank account until allotment. While institutional investors might miss out on interest income with money blocked in current bank accounts which don't yield any interest for those 3 days, retail investors continue to earn the interest from their savings accounts during the IPO process." T+3 timeline is the time period for the settlement of stock transactions in financial markets.