Sebi won’t Defer Stricter Norms for Anchor Investors

The board of the securities and exchange Board of India (Sebi) meeting held late last month did not approve a proposal to defer the implementation of tighter anchor investor norms for large initial public offering (IPOs). The matter was discussed by the board at its largest meeting on march 29 where 29 where it decided to go ahead with the regulations from April.1 the deferment proposal was part of the agenda of the board meeting. Bankers and lawyers said the recommendation was aimed at facilitating better institutional participation in the upcoming initial share sale of life insurance corporation (LIC) “It has not yet been implemented because it was not approved by the board,” said a person with direct knowledge of the matter.” It was put on hold as there are no issues above 10000 crore coming up now.” The regulator had proposed to exempt all IPOs exceeding 10000 crores from the stricter anchor investor norms until july 1,2022 according to the agenda of the march 20 Sebi board meeting. Until now share allotted to anchor investors in an initial public offering (IPO) where subject to a 30- day lock- in. However, from April 1,50 % of shares allotted to anchor investors would be subject to a 90-day lock-in. “The impact of the new allocation methodology for Nils (non- institutional investors) and lock-in provisions for anchor investors appears to be uncertain and may adversely affect their participation in the forthcoming IPOs especially those of the large issuers,” as per the agenda of Sebi board meeting dated march 29.

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