SEBI additionally proposes increasing the anchor investor framework by growing the variety of anchor allottees for points above ₹250 crore, enabling wider overseas fund participation.
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HEMANSHI KAMANI/Reuters
The Securities and Change Board of India (SEBI) proposed modifications to the allocation construction of huge preliminary public choices (IPOs) on Thursday, together with growing the share allotted to institutional consumers and lowering the share allotted to retail traders.
The regulator has proposed to chop retail traders’ share to 25 per cent from 35 per cent in a graded method for giant IPOs, whereas that for QIBs could also be raised to 60 per cent from 50 per cent.
The regulator stated that whereas the typical measurement of IPOs has elevated lately, “direct retail participation has remained flat over the previous three years.” In massive public points, retail subscription ranges have been notably muted, SEBI stated, inviting public feedback by August 21.
Anchor investor pool to develop for bigger IPOs
To encourage broader institutional participation, SEBI has additionally proposed increasing the anchor investor framework. For IPOs with anchor allocations above ₹250 crore, the variety of permissible anchor investor allottees could also be elevated, a transfer aimed toward facilitating participation by overseas portfolio traders managing a number of funds.
Additional, SEBI really helpful together with insurance coverage corporations and pension funds within the reserved class of the anchor investor portion, alongside mutual funds. It recommended elevating the reservation for all times insurers, pension funds, and home mutual funds from 30 per cent to 40 per cent of the anchor e book. One-third of this is able to stay earmarked for mutual funds, whereas 7 per cent could be carved out for insurers and pension funds.
Revealed on July 31, 2025