Business

Sebi Proposes Major Overhaul of IPO Norms to Boost Institutional Investment

Sebi's New Proposal for Large IPOs

MUMBAI: In a bold move to reshape the investment landscape, the Securities and Exchange Board of India (Sebi) has introduced a proposal to overhaul the norms for large Initial Public Offerings (IPOs) exceeding Rs 5,000 crore. The plan includes reducing the retail investor quota from 35% to 25% and increasing the allocation for institutional investors to 60%.

Sebi looks at rejigging IPO norms

Enhancing Anchor Investor Slots

Recognizing the stagnant retail participation despite the growing size of IPOs, Sebi also aims to expand anchor investor slots for allocations above Rs 250 crore. This initiative is designed to facilitate foreign portfolio investors and proposes raising anchor reservations for insurers, pension funds, and mutual funds from 30% to 40%, with dedicated sub-quotas for each category.

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