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Until now, reservation in the anchor book was exclusively available for investment funds. Under the revised framework, life insurance companies that are registered with Irdai and pension funds that are registered with PFRDA will now be included in the reserved anchor section, which results in greater inclusiveness and stability for IPO fundraising.
The decision was made in a SEBI board meeting that was held today and chairman of chairman Tuhin Kanta Pandey, his third since he took over as chef in March.
Sebi has also streamlined the structure of the anchor allocation where the two existing categories for discretionary allocation – category I (up to RS 10 Crore) and category II (above RS 10 Crore and up to RS 250 Crore) are merged into a single bucket for allocations to RS 250 Crore.
For such issues there will be a minimum of 5 and a maximum of 15 anchor -all -out, where each investor is needed to receive at least RS 5 crore of shares. For each extra RS 250 crore of allocation, there are still 15 anchor-all tones of this a third is reserved for domestic investment funds, while the balance goes to insurance companies and pension funds. If there is a subscription in the reserved part for insurers and pension funds, the deficit is re -allocated to investment funds.
The relocation is aimed at diversifying the IPO investor base, improving stability and coordinating the framework with global practices by bringing large, patient capital from insurance and pension funds.
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