SEBI permits more anchor investors for IPOs above Rs. 250 cr

An anchor investor is typically a qualified institutional buyer (QIB), who makes an application for a value of Rs. 10 crore or more through the IPO book-building process.

Aug 25, 2015 08:08 IST India Infoline News Service

IPO
Market regulator SEBI on Monday approved relaxed norms for public offers by removing restriction on the maximum number of anchor investors.

The SEBI Board has approved the removal of current restriction on the maximum number of anchor investors (currently 25) for anchor allocation of public issue worth over Rs.  250 crore.

This will be subject to a minimum allotment of Rs. 5 crore per anchor investor.

However, the requirement of number of anchor investors for allocation of up to Rs. 250 crore remains the same.

An anchor investor is typically a qualified institutional buyer (QIB), who makes an application for a value of Rs. 10 crore or more through the IPO book-building process.

The concept of anchor investors in public issues was introduced in 2009.

Separately, the SEBI Board decided that a discussion paper will be placed on the SEBI website for seeking public comments on the proposal to provide general exemption from the open offer obligations under SEBI (SAST) Regulations, 2011, in case of increase in voting rights as a result of expiry of call notice period and forfeiture of shares.

The SEBI Board also decided to seek public comments for the recommendations made by the KV Kamath Committee on clearing corporations.

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